New VED Charges for UK EVs from April 2025

The UK government is set to introduce new vehicle excise duty (VED) charges for electric vehicles (EVs) from April 2025, which could severely impact the adoption of EVs. The new rules will require EV owners to pay a 'showroom tax' and a standard annual rate, with many models also subject to a £410 'luxury' tax, potentially adding up to £2,000 over five years. Critics, including the Society of Motor Manufacturers and Traders (SMMT) and Auto Express, argue that this will discourage drivers from switching to EVs and undermine environmental goals. The cost barriers are particularly concerning for used EV buyers, many of whom may be unaware of the additional charges. The move comes despite falling EV sales and growing concerns about affordability and charging infrastructure. Both industry experts and consumer advocates are calling for the government to reconsider these tax changes and instead provide incentives to encourage EV adoption.