The UK government has today announced that from April 2025, owners of electric vehicles will be required to pay road tax. The chancellor Jeremy Hunt has mentioned that this change will make the road tax system “fairer” than it is now.

For a long time, owners of electric vehicles have been exempt from paying vehicle road tax, which is currently £165 per year. The original idea was to encourage more people to get into an EV, but as of today the rules will be changing from 2025 onwards.

“We recognise that all vehicle owners should pay their fair share of tax, however, the measures announced today mean electric car and van buyers – and current owners – will face a significant uplift in VED. The introduction of taxes should support road transport decarbonisation, and the delivery of net zero, rather than threaten both the new and second-hand EV markets.”

Mike Hawes – Chief executive of the Society of Motor Manufacturers and Traders

There is an estimated 550,000 full electric vehicles on the road today and come 2025, those will be affected by the upcoming changes to road tax. It is understood that this change won’t have much affect on purchasing decisions, as traditional combustion vehicles have road tax prices equivalent or more expensive than £165 per year.

However, the government needs to make sure than EV interest and uptake won’t be unnecessarily affected my taxes, putting buyers off.