Autumn Statement 2022 brings road tax changes for EV drivers
Chancellor Jeremy Hunt has announced his budget in the government’s Autumn Statement and there are changes afoot for electric car drivers.
One of the biggest changes announced will see electric car drivers pay Vehicle Excise Duty (VED, also known as road tax) from 2025 and beyond.
Electric cars are currently exempt from road tax due to their zero emissions, in what has previously been one of the biggest areas to make savings when taking out an electric car lease.
Eager to maintain a tempting incentive for prospective EV drivers, the government have remained committed to giving drivers a reason to make the switch out of their combustion engine cars.
As of April 1, 2025, all newly-registered EVs – and those currently registered – will have to pay just £10 for the first year. Based on emission output of 1 to 50g/km, this is the lowest bracket of road tax currently available.
From year two, the cars will then have to pay £165 a year in road tax. The decision to increase road tax on electric cars will result in additional revenue for the government.