The “vast majority” of UK electric car owners are set to be slapped with a hefty £410 car tax charge within months under a major new rule change, From April 2025, EV owners will be liable for Vehicle Excise Duty (VED) car tax fees for the first time. This means motorists with battery-electric vehicles will have to pay the annual VED charge the same as petrol and diesel owners . However, motorists behind the wheel of more expensive vehicles over £40,000 have to pay a so-called “luxury car tax” .
This will be an extra £410 fee per year between the second and sixth year of ownership which could prove a major blow for electric car owners. The high upfront cost of the new models means almost all EV owners will be caught out including those securing models in the second-hand car market. Auto Express Editor Paul Barker has rallied for changes as he warned many electric car owners might be unaware of the fee until it's too late.
Paul explained: “Regardless of the price paid for a used EV, the car will be liable if it was originally bought for more than £40,000 (the current level for the VED), and the vast majority are going to be caught up in this extra charge. “Some used EV buyers may not even know about the extra £410 a year cost until they go to tax their vehicles.” A Freedom of Information request to the DVLA revealed that a whopping 31 percent of motorists are currently caught out by the charge.
However, under the current system, this could rise to 70 percent .