The Chancellor of the Exchequer has stated that electric vehicles (EVs) will be subject to Vehicle Excise Duty from 2025 by which point, half of all vehicles on the road are projected to be EVs. EVs registered from April 2025 will be taxed at the lowest rate of £10 for the first year and then they will be moved up to the standard bracket of £165 per year.
The standard rate will also apply to EVs first registered after April 2017. Disabled people who are either entitled to VED exemption or a 50% reduction will continue to qualify when they make the switch to electric vehicles.
The AA believes that the decision to tax EVs will remove a key incentive for motorists in making the switch to electric and dampen the environmental benefits of doing so. Whereas the RAC does not believe the announcement will have much effect on the take-up of EVs.
Check out Disabled Motoring UK’s mobility information service.
