Electric cars: in the UK they will pay road tax


The Chancellor of the Exchequer Jeremy Hunt has announced that to get out of the crisis in which the United Kingdom is finding itself, everyone will have to do their part. This also includes electric car owners , who, until now, had been given an advantage for the sake of the environment. The latter will also have to pay excise duty on vehicles, also known as road tax , despite being zero-emissions.


At the moment the rate of this tax varies according to the emissions and the age of the car, exempting electric vehicles. From 2025, the latter will be charged the lowest rate for new cars of £10, to then pay the same rate as other vehicles. Drivers of diesel or petrol cars usually pay £120 to £045 in the first year, and £165 a year for the next 5 years.

The government’s plan includes some incentives for companies that convert to cleaner vehicles. The fear is that this new tax could slow the expansion of the electric car market.

Since the Office of Budget Responsibility has predicted that half of all new vehicles will be electric by 2025, to make our taxation system fairer I have decided that by then they will no longer be excise duty free.

Company car tax rates will remain lower for electric vehicles, and I will limit rate increases to 1% per year for three years starting in 2025.


Jeremy Hunt

  • No more exemptions for electric cars, they will pay road tax in the UK (


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