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Electric Vehicle Road Tax Changes: What You Need to Know

TCH Leasing

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A New Era for Electric Vehicle Road Tax


From April 2025, a significant shift in the UK's road tax system will impact electric vehicle owners. The government's decision to introduce VED (Vehicle Excise Duty) for EVs aims to create a fairer system for all motorists.


Key Changes for Electric Vehicles


  • New Zero-Emission Cars (Registered After April 2025):


  • First-year rate: £10

  • Subsequent years: Standard rate (£190) + Expensive Car Supplement (if applicable)


  • Zero-Emission Cars (Registered Between April 2017 and March 2025):


  • Standard rate: £190


  • Zero and Low-Emission Cars (Registered Between March 2001 and March 2017):


  • B rate: £20


  • Zero-Emission Vans:


  • Petrol/diesel light goods vehicle rate: £335


  • Zero-Emission Motorcycles and Tricycles:


  • Smallest engine size rate: £25



What is the Expensive Car Supplement?


The expensive car supplement is an additional rate payable on new electric vehicles with a list price exceeding £40,000. This is only charged from the second tax payment onwards, and only applies to vehicles registered on or after 1st April 2025.



Impact on Electric Vehicle Lease Customers


If you're leasing an electric vehicle, your monthly payments typically include VED. However, if the VED rate increases during your lease term, you may be responsible for paying the difference. Leasing companies will usually inform you of this if applicable. 


While the government is introducing these changes, the practical implications for EV owners leasing are minimal. TCH Leasing will handle the registration and tax-related matters on your behalf.


Stay Informed and Adapt


As the automotive landscape continues to evolve, it's crucial to stay informed about the latest regulations and tax implications. By understanding these changes, you can make informed decisions about your electric vehicle ownership or leasing. 


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Copyright © 2022 TCH Leasing. All Rights Reserved. Registered Office: T.C. Harrison 1960 Limited, Milford House, Mill Street, Bakewell, Derbyshire, DE45 1HH. Registration Number: 648847. VAT Registration Number: 172 5867 36. T. C. Harrison 1960 Limited, Milford House, Mill Street, Bakewell, Derbyshire, DE45 1HH acts as a credit broker in relation to financial products and not a lender. For customers requiring finance, we can introduce you to a small number of carefully selected credit providers who may be able to offer you different finance products to suit your needs, subject to assessment of your personal circumstances. You are not obliged to use these finance products which may have different interest rates and charges. A lender we introduce will typically provide us with a commission for the work that we do, which is agreed in advance and does not vary with the interest rate or the amount financed. Different lenders we work with may pay commission at different rates. We are only able to offer finance products from the providers we work with. T. C. Harrison 1960 Limited is authorised and regulated by the Financial Conduct Authority. FCA Reg. No. 664529.

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