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Electric car rates prior to 1 April 2025
Today, electric cars (and hydrogen fuel-cell cars such as the Hyundai Nexo) are zero-emission vehicles and currently exempt from paying car tax.

Electric cars registered before April 2017 are also currently exempt from car tax.

The £40,000 expensive-car rule, explained above, initially applied to electric cars. So if you bought a new Tesla Model X (an electric car that costs from £75,000), for instance, you used to have to pay this supplement from the second to sixth year of ownership.

However, it was announced in the 2020 Budget that owners of zero-emission cars bought before 31 March 2025 would no longer have to pay that supplementary rate.

Electric car rates from 1 April 2025
What electric car owners will pay from 2025 depends on the car's age.

Electric cars first registered on or after 1 April 2025: will pay the lowest rate of tax (first year rate), which is currently £10.

From the second year onward, the standard rate kicks in and electric car owners will then need to pay £165 per year - the same rate that petrol and diesel owners pay today (if they have a car first registered after 1 April 2017).

If the electric car costs £40,000 or more when new, the expensive car supplement will be added to the standard rate, for five years.

As it adds to the standard rate, you will pay a supplementary rate during years 2-6 of ownership. Based on on today’s rates, that would mean electric car owners would pay an extra £355 on top of the standard rate of £165, to spend a total of £520 per year, for years 2-6 of ownership, before dropping back down to the standard rate from year 7 of ownership and on.

Electric cars first registered between 1 April 2017 and 31 March 2025: will also pay £165 per year from April 2025 onwards.

The £40,000 expensive car supplement is not being backdated, so an electric car first registered in 2024, for example, will not currently have to pay the supplementary rate of £355 on top of the standard rate from April 2025.

Electric cars first registered between 1 March 2001 and 31 March 2017: in effect, electric cars started coming to the mainstream market around 2010.

But for those who have an electric car registered before 31 Match 2017, owners will be eligible to pay the ‘band b rate’ as listed below, which is currently set at £20 per year for the 22/23 tax year.

Are hybrid cars cheaper to tax?
The rates are slightly different for owners of alternative-fuel cars, though this also seems set to end as of 1 April 2025 with the government saying rates will be equalized.

Alternative-fuel cars are vehicles that don't run purely on diesel or petrol, and include:

hybrids
plug-in hybrids
liquefied petroleum gas (LPG) cars
compressed natural gas (CNG) cars
biofuel cars (bioethanol or biodiesel).
Drivers of alternative-fuel cars currently pay £10 less than petrol and diesel owners per year. They then pay £155 every year after.

In the 2022 autumn budget, it was announced that the rates for alternative-fuel cars will be equalized.

Car tax rates for cars first registered before 1 April 2017
Any cars first registered as new after 1 March 2001, but before 1 April 2017, continue to be taxed at their previous, respective rates. These are based on official CO2 emissions.

The amount of CO2 your car produces puts it into one of 13 bands, which are assigned letters A to M. Cars in band A emit the least amount of CO2, and are currently exempt from paying any car tax throughout the life of the car.

Current vehicle tax rates for cars registered pre-April 2017
Low-emission cars (producing up to 100g/km CO2) registered before 1 April 2017 were not liable for car tax. For cars registered from 1 April 2017, this exemption no longer applies.

These rates apply to cars first registered before April 2017. The rates also tend to increase year on year in line with RPI (the retail price index), and have been updated to show the latest April 2022-23 tax-year rates.

Car tax band
CO2 emissions
Annual rate
A Up to 100g/km £0
B 101-110g/km £20
C 111-120g/km £30
D 121-130g/km £135
E 131-140g/km £165
F 141-150g/km £180
G 151-165g/km £220
H 166-175g/km £265
I 176-185g/km £290
J 186-200g/km £330
K 201-225g/km £360
L 226-255g/km £615
M. Over 255g/km £630

*Band K includes cars that have a CO2 figure of more than 225g/km but were registered before 23 March 2006. Annual rate after first year assumes single 12-month payment. You can choose to set up a direct debit to pay monthly, or pay a single payment every six months. But if you choose either of these options, you will end up paying more compared with a single payment for 12 months.

Previous tax rates for alternative-fuel cars
Alternative-fuel cars are those that don't run purely on diesel or petrol, such as hybrids.

The car tax rates for alternative-fuel cars registered before 1 April 2017 are £10 less than for regular petrol or diesel combustion cars; to get the rate for your car, deduct £10 from the rate in the table.

Cars registered before 1 March 2001
These car tax rates apply to cars registered from 1 March 2001. Cars registered before this date are charged based on their engine size; as of April 2022, those with engines smaller or equal to 1549cc now pay £180 a year, and those with larger engines pay £295 a year.

A rolling 40-year car tax exemption for classic vehicles applies from 1 April 2015. It means any vehicle built 40 or more years ago will be exempt from car tax on an automatic rolling basis on 1 April each year.
 
If you were actually looking to just cover the costs of wear and tear to roads.....

I am pretty sure I, either read or, heard an article that stated for an equally sized and type of vehicle... generally hybrid versions create more wear to the road surface due to additional weight, when compared to pure ICE or pure EV!

Which makes sense to me, as you would need two decent sized power sources to drive the vehicle in each mode?

But of-course most EV's are outside of the budget for the majority of the population?
So those what can buy... should be able to afford the tax anyway?
 
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But of-course most EV's are outside of the budget for the majority of the population?
So those what can buy... should be able to afford the tax anyway?
More and more 'affordable' EV's coming onto the market, of course you can also buy a used EV instead of a new ICE too. You then reap the rewards and help the environment.
 
More and more 'affordable' EV's coming onto the market, of course you can also buy a used EV instead of a new ICE too.

Used EV's are way out the pockets of 75% of the population

You then reap the rewards and help the environment.

Hum - the huge hole being created by the reduction of fuel duties will have to be filled soon
 
Used EV's are way out the pockets of 75% of the population
I dont agree, look around at the new reg cars around, each and every one of them could have been a used EV

Hum - the huge hole being created by the reduction of fuel duties will have to be filled soon
Of course it will but even so, the fuel is much cheaper and the traction system way more efficient.
 
EV's are typically far heavier than ICE's and therefore likely to cause more road damage
To counter that, ICE vehicles need fuel, that fuel is delivered to petrol stations via lorries that will do far more road damage than EV's so your argument is countered. In addition, fluids leaked from ICE and brake dust etc also contaminates the road surface.
 
To counter that, ICE vehicles need fuel, that fuel is delivered to petrol stations via lorries that will do far more road damage than EV's so your argument is countered. In addition, fluids leaked from ICE and brake dust etc also contaminates the road surface.

from what I see in my client base the only people with EVs are the well off …..
 
EV's are typically far heavier than ICE's and therefore likely to cause more road damage
This is largely a myth, my current EV weighs in at almost exactly the same as my last comparably sized Petrol car.

In any case almost no road damage is done by even the heaviest cars or light vans. Almost all of it is done by heavy trucks
 
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Hum - the huge hole being created by the reduction of fuel duties will have to be filled soon
If we fail to mitigate the effects of climate change, we will all end up paying out for additional damage to infrastructure, flooding of property, via higher insurance costs and higher food costs.
 
To counter that, ICE vehicles need fuel, that fuel is delivered to petrol stations via lorries that will do far more road damage than EV's so your argument is countered. In addition, fluids leaked from ICE and brake dust etc also contaminates the road surface.

The infra structure for refueling ICE is already in place, including in rural and remote places..
EV charging hasn't even started to scratch the surface for sufficient recharging within areas of higher population density.

So even if you wanted to.. currently you physically cannot get the range flexibility -vs- the refueling time, if you needed to make any longer journey at short notice.
 
The infra structure for refueling ICE is already in place, including in rural and remote places..
EV charging hasn't even started to scratch the surface for sufficient recharging within areas of higher population density.

So even if you wanted to.. currently you physically cannot get the range flexibility -vs- the refueling time, if you needed to make any longer journey at short notice.
Well if I don't boot it, I can drive 320 miles in cold, wet, winter weather if needed before stopping, closer to 400 in summer. This isn't the problem many think it is anymore.

You're quite right about infrastructure though, for those who can't charge at home overnight. It needs a lot of work.
 
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More and more 'affordable' EV's coming onto the market, of course you can also buy a used EV instead of a new ICE too. You then reap the rewards and help the environment.

You appear to have the incorrect assumption that the bulk of the population could currently afford to buy a new ICE?

Many cannot.. So you need to be comparing what EV's are currently available within a budget of those who are buying from the second-hand ICE market.

For more years than I can remember the bulk of new car sales with ICE have actually been company cars, fleet rental vehicles etc..
And loads of the joe public wanting to buy their own car have been primarily from the second-hand market.

Currently EV's are still well outside of the budget of the average private purchaser.
 

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