VED rules for electric and hybrid vehicles

Electric, zero-emission and low-emission vehicles cars, vans and motorcycles have been subject to Vehicle Excise Duty (VED) since 1 April 2025. All new and existing vehicles in these categories are now subject to VED based on their registration date and type.

For electric, zero or low-emission cars registered on or after 1 April 2025, a £10 first-year VED applies. This is followed by a standard annual rate of £195 from the second year. Vehicles registered between 1 April 2017 and 31 March 2025 will also pay the standard rate of £195 per year. Older models registered between 1 March 2001 and 31 March 2017 are taxed at £20 annually.

Hybrid and alternatively fuelled vehicles (AFVs) no longer benefit from the £10 annual discount. If first registered before 1 April 2017, their tax rate depends on CO2 emissions. If registered on or after that date, they are taxed at the standard £195 rate.

Most electric vans have moved to the standard rate for light goods vehicles and electric motorcycles and tricycles are now taxed at the rate for the smallest engine size. Additionally, new electric or zero-emission vehicles registered since 1 April 2025 that have a list price over £40,000 are subject to the standard rate plus the "expensive car supplement" for five years, starting from the second licence.

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