UK Car Tax Changes 2025: End of Free EV Road Tax (Complete VED Guide)

Introduction

Breaking change for UK car buyers: From 1 April 2025, the era of free road tax for electric vehicles ends. All 1.7 million EVs on UK roads will start paying Vehicle Excise Duty (VED)—a seismic shift that fundamentally changes the economics of EV ownership and dramatically impacts the used car market.

But that's not all. The 2025 VED overhaul introduces:

• £195 annual standard rate for all EVs (new and existing)
• £620 total annual tax for EVs over £40,000 (rising to £50,000 threshold in 2026)
• Pay-per-mile tax from 2028 (3p/mile for EVs, 1.5p/mile for hybrids)
• Complex rules for vehicles registered before vs after April 2025

Whether you're buying a used petrol, diesel, hybrid, or electric vehicle in 2025, understanding the new VED rules is critical to avoiding unexpected costs and making smart purchasing decisions.

This comprehensive guide explains exactly what's changing, how much you'll pay for different vehicles, how the new rules affect used car values, and what to check before buying any car in 2025 to avoid expensive tax surprises.

Bottom line: A £18,000 used EV that was "free to tax" in 2024 will cost £195-£620/year from April 2025. Factor this into your budget, or you could face a nasty shock.

What is VED (Vehicle Excise Duty)?

Vehicle Excise Duty—commonly called "road tax" or "car tax"—is an annual charge paid by vehicle owners to legally drive on UK public roads. The amount you pay depends on:

Current System (Until 31 March 2025):

How VED is Calculated:

1. First Year Rate: Based on CO2 emissions (higher emissions = higher tax)
2. Standard Rate: Flat annual charge from year 2 onwards
3. Expensive Car Supplement: Extra £390/year for vehicles over £40,000 (years 2-6)
4. Electric Vehicle Exemption: £0 road tax (free)

VED Rates by Fuel Type (Pre-April 2025):

Electric Vehicles:

• First Year: £0
• Standard Rate: £0 (FREE)
• Over £40,000: £0 (no expensive car supplement)

Petrol/Diesel (50-75g/km CO2):

• First Year: £120
• Standard Rate: £195/year
• Over £40,000: £585/year (£195 + £390 supplement) for years 2-6

Petrol/Diesel (151-170g/km CO2):

• First Year: £650
• Standard Rate: £195/year
• Over £40,000: £585/year for years 2-6

Petrol/Diesel (Over 255g/km CO2):

• First Year: £2,745
• Standard Rate: £195/year
• Over £40,000: £585/year for years 2-6

Why EVs Had Free Road Tax:

The government incentivized EV adoption by eliminating road tax. This saved EV owners £195-£585 per year compared to petrol/diesel equivalents—a compelling financial reason to go electric.

That ends 1 April 2025.

Major VED Changes from 1 April 2025

The biggest shake-up to UK road tax in a generation affects every vehicle on the road.

Change 1: EVs Lose Free Road Tax

New EVs Registered On/After 1 April 2025:

• First Year Rate: £10 (minimal)
• Standard Rate: £195/year (from year 2 onwards)
• Expensive Car Supplement: £425/year extra for EVs over £40,000 (years 2-6)
  • Total: £620/year for expensive EVs (£195 + £425)

Existing EVs Registered Before 1 April 2025:

• Pre-April 2025: £0/year (free)
• From April 2025: £195/year (standard rate applies)
• No Expensive Car Supplement: Even if original price was over £40,000, existing EVs avoid the luxury tax

Key Difference: Cars registered before April 2025 escape the expensive car supplement permanently, even if they cost £80,000. This creates a pricing incentive for used EVs registered before the deadline.

Change 2: Expensive Car Threshold Rises (But Not Until 2026)

Current: £40,000 threshold for expensive car supplement From 1 April 2026: £50,000 threshold (applies to vehicles registered from 1 April 2025)

What This Means:

• EV registered March 2025 (before deadline): £0 tax forever (grandfathered)
• EV costing £45,000 registered April 2025: £620/year for years 2-6, then £195/year
• Same EV registered April 2026: £195/year only (avoids supplement as under new £50k threshold)

Strategic Implication: EVs priced £40k-£50k see sweet spot from April 2026 onwards (no supplement).

Change 3: Pay-Per-Mile Tax Coming 2028

From April 2028, a new distance-based charging system (eVED) will replace the current flat-rate VED for electric and plug-in hybrid vehicles.

Proposed Rates:

• Battery Electric Vehicles (BEVs): 3p per mile
• Plug-in Hybrids (PHEVs): 1.5p per mile

Impact:

• Low Mileage (5,000 miles/year): £150/year (BEV) vs £195 current = £45 saving
• Average Mileage (7,500 miles/year): £225/year (BEV) vs £195 current = £30 increase
• High Mileage (15,000 miles/year): £450/year (BEV) vs £195 current = £255 increase

Conclusion: High-mileage EV drivers will face substantial tax increases from 2028. Low-mileage drivers may benefit slightly.

Change 4: Electric Vans Hit Hard

Commercial EVs (vans, light goods vehicles):

• Pre-April 2025: £0/year (free)
• From 1 April 2025: £335/year (standard commercial vehicle rate)

Impact: Electric van operating costs increase £335/year—significant for tradespeople and businesses running electric fleets.

VED Rates by Vehicle Type (April 2025 Onwards)

Understanding what you'll pay depends on when the vehicle was registered and its original price.

Electric Vehicles (BEVs):

Registered Before 1 April 2025:

• Annual VED: £195/year
• No Supplement: Regardless of original price

Registered On/After 1 April 2025 (Under £40,000):

• Year 1: £10
• Years 2+: £195/year

Registered On/After 1 April 2025 (£40,000-£50,000):

• Year 1: £10
• Years 2-6: £620/year (£195 + £425 supplement)
• Years 7+: £195/year

Registered On/After 1 April 2026 (£40,000-£50,000):

• Year 1: £10
• Years 2+: £195/year (no supplement—under new £50k threshold)

Registered Any Time (Over £50,000 from 2026, or over £40k until 2026):

• Year 1: £10
• Years 2-6: £620/year
• Years 7+: £195/year

Petrol/Diesel Vehicles:

No Changes to standard rates:

• Standard Rate: £195/year (unchanged)
• Expensive Car Supplement: £390/year for vehicles over £40,000 (years 2-6)
• Total for Expensive Cars: £585/year (years 2-6), then £195/year (years 7+)

Plug-in Hybrids (PHEVs):

Current Status (Until April 2028):

• Treated as petrol/diesel vehicles
• VED based on CO2 emissions
• Most PHEVs: £10-£150 first year, £195/year standard rate

From April 2028:

• Pay-Per-Mile: 1.5p per mile
• Average 7,500 miles/year: £112.50/year (cheaper than current £195)
• High mileage 15,000 miles/year: £225/year (£30 increase)

Petrol/Diesel Hybrids (HEVs):

No Special Treatment:

• Charged as standard petrol vehicles
• VED based on CO2 emissions
• Most hybrids: £10-£120 first year, £195/year standard rate

How VED Changes Affect Used Car Buying

The 2025 VED changes create winners and losers in the used car market.

Impact 1: Pre-April 2025 EVs Become More Valuable

Why:

• Avoid expensive car supplement forever (even if they cost £80,000 new)
• Only pay £195/year vs £620/year for expensive EVs registered after April 2025

Example:

• 2024 Tesla Model Y Long Range (£52,000 new):
  • Registered March 2025: £195/year VED forever
  • Registered April 2025: £620/year VED for years 2-6, then £195/year
  • Difference: £2,125 extra tax over 5 years (£425 × 5)

Used Market Impact:

• March 2025 registered EVs command £1,000-£2,000 premium over April 2025 equivalents
• "Pre-VED change" becomes selling point
• Buyers specifically search for "registered before April 2025" EVs

Impact 2: Budget EVs (Under £40k) Less Affected

Why:

• No expensive car supplement regardless of registration date
• VED increase modest: £0 → £195/year

Examples:

• Nissan Leaf (£30,000 new): £195/year from April 2025
• MG4 (£27,000 new): £195/year from April 2025
• Renault Zoe (£28,000 new): £195/year from April 2025

Used Market Impact:

• Budget EVs see stable demand
• £195/year still cheaper than petrol running costs for most buyers
• Entry-level EVs remain attractive

Impact 3: Expensive EVs (Over £40k) Hit Hardest

Why:

• Massive tax increase: £0 → £620/year (for post-April 2025 registrations)
• 5-year tax burden: £3,100 (£620 × 5)

Examples:

• Tesla Model 3 Long Range (£48,000 new): £620/year (years 2-6)
• BMW iX3 (£55,000 new): £620/year (years 2-6)
• Audi e-tron (£65,000 new): £620/year (years 2-6)

Used Market Impact:

• Expensive EV values drop 3-5% (buyers factor in tax burden)
• Pre-April 2025 expensive EVs hold value better
• Buyers negotiate £1,500-£2,500 discounts on post-April 2025 expensive EVs

Impact 4: Petrol/Diesel Comparisons Shift

Previous Reality:

• EV: £0/year tax, petrol equivalent: £195/year
• Tax savings: £195/year × 5 years = £975

New Reality (From April 2025):

• EV: £195/year tax, petrol equivalent: £195/year
• Tax savings: £0/year

Used Market Impact:

• EVs lose key cost advantage over petrol/diesel
• Buyers reevaluate total cost of ownership
• Petrol hybrids become more competitive (similar VED, no charging infrastructure needed)

Impact 5: Timing Matters for Buyers

Best Time to Buy EVs:

• Before April 2025: Avoid VED entirely for remainder of ownership (if buying used, already registered)
• After April 2026: Expensive EVs benefit from raised £50k threshold (avoid supplement)

Worst Time to Buy EVs:

• April 2025 - March 2026: Expensive EVs hit with £40k threshold and full supplement

What to Check Before Buying Any Car in 2025

VED changes create new due diligence requirements.

Check 1: Vehicle Registration Date (Critical for EVs)

Why It Matters:

• Determines if expensive car supplement applies
• March 2025 vs April 2025 registration = £2,125 difference over 5 years (expensive EVs)

How to Check:

1. V5C logbook: Shows "Date of First Registration"
2. Free MOT history check: check-mot.service.gov.uk
3. Ask seller directly: "What is the exact registration date?"

Red Flag: Seller evasive about registration date—they may know it's post-April 2025 (expensive)

Check 2: Original List Price (For Expensive Car Supplement)

Why It Matters:

• £40,000+ triggers supplement (£390/year petrol/diesel, £425/year EV)
• Some models just over threshold (negotiate or walk away)

How to Check:

1. V5C logbook: Check "Make" and "Model"
2. Research original manufacturer list price (not discounted sale price)
3. DVLA database: Shows if expensive car supplement applies
4. Check VED at gov.uk/check-vehicle-tax

Tricky Cases:

• Car sold for £38,000 but original list price was £42,000 = supplement applies
• Options/extras may push under-£40k model over threshold

Example:

• BMW 3 Series 320d M Sport: Base price £39,500
• With options (sunroof, leather, tech pack): £42,500
• Result: Expensive car supplement applies (£390/year extra for years 2-6)

Check 3: Current VED Status and Arrears

Why It Matters:

• Outstanding VED transfers to new owner (you inherit the debt)
• Undeclared SORN can cause insurance issues

How to Check:

1. Free check at gov.uk/check-vehicle-tax
2. Enter registration number
3. Verify:
   • Tax status (Taxed, SORN, Untaxed)
   • Tax due date
   • Any outstanding penalties

Red Flags:

• "Untaxed" status—may have arrears
• Recent SORN (Statutory Off Road Notification)—check why car was off-road
• Seller claims "just taxed it" but check shows untaxed—fraud

Check 4: Future VED Liability (2028 Pay-Per-Mile)

Why It Matters:

• If buying EV or PHEV, 2028 brings pay-per-mile tax
• High-mileage drivers face substantial increases

Calculate Your 2028 Tax:

1. Estimate annual mileage
2. Multiply by rate:
   • BEV: Annual miles × £0.03
   • PHEV: Annual miles × £0.015

Examples:

• BEV, 15,000 miles/year: £450/year (£255 increase vs current £195)
• PHEV, 12,000 miles/year: £180/year (£15 decrease vs current £195)

Decision Impact:

• High mileage drivers: Consider PHEV over BEV (half the per-mile rate)
• Low mileage drivers: BEV still competitive

Check 5: Comprehensive Vehicle History (Essential)

Why VED Changes Make This Critical:

• Outstanding finance epidemic on EVs (bought via PCP with VED as selling point)
• Clocking rare on EVs but possible
• Import status affects VED calculation

Get Carhealth Report (£3.99):

• Outstanding finance check (car can be repossessed)
• Stolen vehicle check
• Insurance write-off history
• Mileage verification
• Import/export records
• Previous keeper count

VED-Specific Checks:

• Imported vehicles may have different VED classification
• Write-off category affects insurance (but not VED)
• High keeper turnover may indicate expensive VED avoided by serial flipping

VED Calculation Examples: What You'll Actually Pay

Let's calculate real-world VED costs for popular used vehicles.

Example 1: 2023 Tesla Model 3 Long Range (£48,000 Original Price)

Registered February 2025 (Before Deadline):

• 2025: £0 (free, as currently owned)
• 2026: £195
• 2027: £195
• 2028: Pay-per-mile (e.g., 10,000 miles = £300)
• 5-Year Total (2025-2029): £690 + pay-per-mile 2028-2029

Registered May 2025 (After Deadline, Before £50k Threshold Rise):

• 2025: £10
• 2026: £620 (£195 + £425 supplement)
• 2027: £620
• 2028: Pay-per-mile (e.g., 10,000 miles = £300)
• 5-Year Total (2025-2029): £1,550 + pay-per-mile 2028-2029

Difference: £860 extra for post-April 2025 registration (before 2028 pay-per-mile kicks in)

Example 2: 2022 Nissan Leaf (40kWh, £28,000 Original Price)

Registered Any Time Before April 2025:

• 2025: £0 (free, as currently owned)
• 2026: £195
• 2027: £195
• 2028: Pay-per-mile (e.g., 6,000 miles = £180)
• 5-Year Total (2025-2029): £570 + pay-per-mile 2028-2029

Registered After April 2025:

• 2025: £10
• 2026: £195 (no supplement—under £40k)
• 2027: £195
• 2028: Pay-per-mile (e.g., 6,000 miles = £180)
• 5-Year Total (2025-2029): £580 + pay-per-mile 2028-2029

Difference: Minimal (£10)—budget EVs largely unaffected

Example 3: 2021 BMW 330e M Sport PHEV (£43,000 Original Price)

Current VED (Until April 2025):

• First Year: £120 (CO2-based)
• Standard Rate: £195/year
• Expensive Car Supplement: £390/year (years 2-6, over £40k)
• Total: £585/year (years 2-6), then £195/year

From April 2028:

• Pay-per-mile: £0.015/mile
• 10,000 miles/year: £150/year
• Saving: £45/year vs current £195 (or £435/year vs current £585 if in supplement period)

Buying Advice: Wait until 2028 if possible—PHEVs get cheaper VED

Example 4: 2020 Volkswagen Golf 2.0 TDI (£25,000 Original Price)

Current and Future VED (No Changes):

• First Year: £220 (CO2-based)
• Standard Rate: £195/year (unchanged)
• No expensive car supplement (under £40k)

Total: £195/year forever (unaffected by EV changes)

Buying Advice: Stable VED costs, budget accordingly

Example 5: 2024 Audi e-tron GT (£100,000 Original Price)

Registered March 2025 (Before Deadline):

• 2025: £0 (free)
• 2026: £195 (no supplement—grandfathered)
• 2027: £195
• 2028: Pay-per-mile (e.g., 8,000 miles = £240)
• 5-Year Total (2025-2029): £630 + pay-per-mile 2028-2029

Registered May 2025 (After Deadline):

• 2025: £10
• 2026: £620 (£195 + £425 supplement)
• 2027: £620
• 2028: £620 + pay-per-mile override (likely still flat rate during transition)
• 2029: £620
• 2030: £195 (supplement ends after year 6)
• 5-Year Total (2025-2029): £2,490 + transition to pay-per-mile

Difference: £1,860 extra over 5 years for post-April 2025 registration

Buying Advice: Pre-April 2025 Audi e-tron GTs will command £3,000-£5,000 premium

Strategic Buying Advice for 2025

Navigate the VED changes with these smart strategies.

Strategy 1: Buy Pre-April 2025 Expensive EVs

Target Vehicles:

• Tesla Model 3 Long Range, Model Y Long Range
• BMW iX3, i4
• Mercedes EQA, EQC
• Audi Q4 e-tron, e-tron GT
• Polestar 2 Long Range

Why:

• Avoid expensive car supplement forever (£425/year × 5 = £2,125 saving)
• Market hasn't fully priced in this advantage yet
• As April 2025 approaches, pre-registered EVs will command premium

How to Find Them:

• Search by registration date: "Registered before April 2025"
• Check V5C registration date before viewing
• Negotiate using VED savings as justification for paying near market value

Example:

• 2024 Tesla Model Y Long Range (£52k new), registered March 2025
• Current market value: £35,000
• Fair price: £35,000-£36,000 (VED savings justify premium)

Strategy 2: Wait Until April 2026 for £40k-£50k EVs

Why:

• Expensive car threshold rises to £50,000 from 1 April 2026
• EVs priced £40k-£50k avoid supplement if registered April 2026+

Target Vehicles (New List Price £40k-£50k):

• Tesla Model 3 Long Range (£48k)
• BMW i4 eDrive40 (£52k) ❌ Still over £50k
• Polestar 2 Long Range (£45k)
• Hyundai Ioniq 5 (£42k-£48k depending on spec)

Strategy:

• If buying in 2025, target pre-April 2025 registration (avoids supplement)
• If buying in 2026+, any registration works (under new £50k threshold)

Strategy 3: Focus on Budget EVs (Under £40k)

Why:

• VED impact minimal: £0 → £195/year
• No expensive car supplement regardless of registration date
• Still cheaper to run than petrol (fuel savings offset VED)

Best Budget EVs:

• MG4 (£26k-£32k)
• MG5 EV Estate (£30k-£33k)
• Nissan Leaf (£28k-£35k)
• Renault Megane E-Tech (£36k-£40k)
• Vauxhall Corsa Electric (£31k-£34k)

Buying Advice:

• Registration date matters less (no supplement)
• Focus on battery health and mileage instead
• Total cost of ownership still favors EVs vs petrol

Strategy 4: Consider PHEVs for High Mileage

Why:

• From 2028, PHEVs pay 1.5p/mile vs 3p/mile for BEVs
• High mileage (15,000+ miles/year) makes PHEVs cheaper from 2028
• No range anxiety, best of both worlds

Calculation:

• 20,000 miles/year:
  • BEV 2028 VED: £600/year
  • PHEV 2028 VED: £300/year
  • Saving: £300/year

Best PHEVs:

• BMW 330e (£40k-£45k)
• Mercedes C300e (£42k-£48k)
• Audi A3 e-tron (£35k-£40k)
• Volvo XC40 Recharge (£40k-£45k)

Buying Advice:

• If you drive high mileage, PHEV VED will be cheaper than BEV from 2028
• Factor this into 2025 purchasing decisions

Strategy 5: Petrol Hybrids Gain Competitiveness

Why:

• EVs no longer have VED advantage (both pay £195/year)
• Petrol hybrids offer 55-65 MPG without charging infrastructure
• Similar total cost of ownership to EVs now

Best Petrol Hybrids:

• Toyota Corolla Hybrid (£27k-£32k)
• Honda CR-V Hybrid (£38k-£42k)
• Lexus UX 250h (£32k-£38k)
• Kia Niro Hybrid (£28k-£33k)

Buying Advice:

• VED: £195/year (same as EV)
• Fuel economy: 55-65 MPG real-world
• No charging needed, proven reliability
• Excellent used market alternative to EVs

Impact on EV Leasing and Finance

VED changes affect monthly costs for leased and financed vehicles.

Personal Contract Purchase (PCP) Impact:

Pre-April 2025 Deals:

• Manufacturers absorbed VED in monthly payment calculation
• VED: £0 = lower monthly cost

Post-April 2025 Deals:

• Monthly payments increase to cover £195/year VED
• Example: £195 ÷ 12 = £16.25/month extra
• Expensive EVs: £620 ÷ 12 = £51.67/month extra (years 2-6)

Buying Advice:

• Compare pre-April 2025 lease deals (may still honor £0 VED)
• Post-April 2025 leases will factor in VED—shop around

Personal Contract Hire (PCH) Leasing:

Who Pays VED:

• Leasing company typically pays VED
• Cost passed to customer via monthly payment

Impact:

• Monthly lease payments rise £15-£50/month (depending on vehicle price)
• Pre-April 2025 lease deals may be cheaper (locked in £0 VED)

Buying Advice:

• Sign lease before April 2025 if possible (lock in old VED rates)
• Post-April 2025, expect higher monthly costs

Company Car Tax (Benefit-in-Kind):

Good News:

• Company car tax (BiK) unaffected by VED changes
• BEVs still 2% BiK (vs 25-37% for petrol/diesel)
• EVs remain massively advantageous for company car drivers

Example:

• £40,000 EV: 2% BiK = £800/year taxable benefit × 40% tax = £320/year
• £40,000 petrol (130g/km): 29% BiK = £11,600 taxable benefit × 40% = £4,640/year
• Saving: £4,320/year (BiK alone, despite new £195 VED)

Buying Advice:

• Company car drivers: EVs still make overwhelming financial sense
• VED increase irrelevant compared to BiK savings

What to Do If You Already Own an EV

Existing EV owners face new annual costs from April 2025.

Pre-April 2025 EV Owners:

What Changes:

• VED: £0 → £195/year (from April 2025)
• No expensive car supplement (grandfathered, regardless of price)

What to Do:

1. Budget £195/year: Set aside £16/month for VED
2. Verify Exemption: Check gov.uk/check-vehicle-tax confirms no supplement
3. Consider Selling Before April 2025: If planning to sell soon, do it before VED kicks in (buyers currently don't factor it in)
4. Renew Tax on Time: Set reminder for first VED payment (April 2025)

Silver Lining:

• Still cheaper than petrol/diesel total cost of ownership
• No expensive car supplement (unlike post-April 2025 EVs)

Post-April 2025 EV Buyers:

What Changes:

• Budget EVs (under £40k): £195/year
• Expensive EVs (over £40k): £620/year for years 2-6, then £195/year

What to Do:

1. Factor VED into Budget: £195-£620/year ongoing cost
2. Compare to Petrol Savings: Typically save £600-£1,200/year on fuel vs petrol
3. Monitor 2028 Pay-Per-Mile: Prepare for shift to distance-based charging
4. Check Warranty Coverage: Ensure battery warranty covers rising tax burden

Selling Your EV Before April 2025:

Advantages:

• Buyers may not have fully priced in VED changes yet
• "Free road tax" still a selling point until April 2025
• Expensive EVs avoid price drop from supplement

Strategy:

• List as "Zero road tax" prominently in ads
• Sell before March 2025 if possible (before buyer awareness peaks)
• Price competitively (don't overestimate VED advantage)

FAQs: UK Car Tax Changes 2025

Q: When does free EV road tax end in the UK? A: 1 April 2025. All electric vehicles (new and existing) will start paying £195/year standard VED from this date. EVs registered before April 2025 avoid the expensive car supplement, even if they cost over £40,000.

Q: How much is EV road tax from April 2025? A: £195/year for all EVs (standard rate). Expensive EVs (over £40,000 list price) registered on/after 1 April 2025 pay an additional £425/year supplement for years 2-6, totaling £620/year during that period.

Q: Do existing EVs pay the expensive car supplement? A: No. EVs registered before 1 April 2025 are exempt from the expensive car supplement, regardless of their original price. A £100,000 EV registered in March 2025 pays only £195/year from April 2025 onwards.

Q: What is the pay-per-mile EV tax coming in 2028? A: From April 2028, EVs will pay 3p per mile and plug-in hybrids will pay 1.5p per mile via a new distance-based eVED system. This replaces the flat £195/year rate. Example: 10,000 miles/year in an EV = £300/year.

Q: When does the expensive car threshold rise to £50,000? A: 1 April 2026. This applies to vehicles registered from 1 April 2025 onwards. EVs priced £40,000-£50,000 registered from April 2026 will avoid the expensive car supplement.

Q: Should I buy an EV before April 2025 to avoid VED? A: If buying used, the registration date matters, not purchase date. A March 2025-registered EV avoids the expensive car supplement forever. If buying new, registering before April 2025 provides the same benefit, but most manufacturers have already pre-registered April+ stock.

Q: How does VED affect used EV prices? A: EVs registered before April 2025 (especially expensive ones over £40k) command a £1,000-£2,000 premium due to avoiding the £425/year supplement (£2,125 saving over 5 years). Budget EVs see minimal price impact.

Q: Can I check a car's VED status online? A: Yes, visit gov.uk/check-vehicle-tax and enter the registration number. This shows current tax status, expiry date, and whether the expensive car supplement applies. Essential check before buying any vehicle.

Q: Do electric vans pay road tax from April 2025? A: Yes. Electric vans and light commercial vehicles move from £0 to £335/year standard commercial vehicle rate from 1 April 2025—a significant increase for businesses.

Q: Are hybrid cars affected by the 2025 VED changes? A: Petrol/diesel hybrids are unaffected (continue paying £195/year standard rate). Plug-in hybrids face pay-per-mile charging from 2028 (1.5p/mile), potentially lowering costs for average mileage drivers.

Conclusion

The end of free EV road tax on 1 April 2025 marks the most significant shift in UK vehicle taxation since road tax was introduced. Every car buyer—whether considering petrol, diesel, hybrid, or electric—needs to understand these changes to make informed decisions and avoid unexpected costs.

Key Takeaways:

1. All EVs pay £195/year from April 2025—the free ride is over
2. Expensive EVs (over £40k) pay £620/year if registered after 1 April 2025 (years 2-6)
3. Pre-April 2025 EVs avoid expensive car supplement forever—valuable grandfathered status
4. Pay-per-mile tax from 2028 changes the math for high-mileage drivers (3p/mile BEV, 1.5p/mile PHEV)
5. Check registration date before buying—March vs April 2025 = £2,125 difference over 5 years
6. Budget EVs (under £40k) minimally affected—still competitive vs petrol
7. Petrol hybrids gain competitiveness—same VED as EVs, no charging infrastructure needed

Action Plan for Buyers:

Before Buying Any Car:

1. Check VED at gov.uk/check-vehicle-tax (verify current status and supplement)
2. Confirm registration date (V5C logbook or MOT history)
3. Research original list price (determines expensive car supplement)
4. Calculate total 5-year VED cost (factor into budget)
5. Get Carhealth report (£3.99)—outstanding finance, stolen status, write-offs

Smart Strategies:

• Target pre-April 2025 expensive EVs (avoid supplement)
• Wait until April 2026 for £40k-£50k EVs (new threshold)
• Consider budget EVs under £40k (minimal VED impact)
• Evaluate PHEVs for high mileage (cheaper from 2028)
• Compare petrol hybrids (now VED-competitive with EVs)

The VED landscape has fundamentally changed. Buying blind to these changes could cost you £2,000-£3,000 over 5 years. Buying smart—with full knowledge of registration dates, thresholds, and future pay-per-mile plans—can save you thousands and help you choose the right vehicle for your needs.

A £3.99 Carhealth check plus 10 minutes researching VED implications could be the smartest investment you make when buying your next car.

The rules have changed. Your strategy must change too.

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Sources:

• Vehicle tax for electric, zero and low emission vehicles - GOV.UK
• Electric car road tax – guide to VED for EVs 2025 | RAC Drive
• Car tax bands 2025: VED road tax costs explained | RAC Drive
• UK EV Road tax changes 2025: everything you need to know | Electrifying.com
• Road Tax Changes: 2025 VED Rates Explained – Santander Consumer Finance