EVs to pay road tax from 2025

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Aretnap said:

Car_54 said:

Ectophile said:

Deleted_User said:

VED is a nominal pollution tax and is nothing to do with the roads - local repairs are done by the council, national road works are done from central government funds.

But at least the government didn't suddenly start taxing existing cars at the new rates, which is what they are going to do with EVs.

Isn't that what governments have previously always done? I.e. new rates announced in budget, then applied to all existing cars.

They've periodically changed the banding system radically - from a flat rate, to bands based on engine size, to bands based on emissions etc. Existing cars have always seen the tax for their band increase each year, but completely new banding systems have only ever applied to new cars.

I'm willing to be corrected, but I can't recall a precedent for existing zero rated cars becoming non-zero rated.

When they went from flat rate for all to sub 1500 was affordable and over 1500 was extortionate it was applied retrospectively, I got rid of my 1600 Orion PDQ and bought a RangeRover to get my money's worth, sub-1500cc cars shot up in value.

Then they introduced banding for motorcycles retrospectively and made 600cc + massively expensive, I owned a 650, so I bought a 900

Ditzy_Mitzy

Aretnap said:

Car_54 said:

Ectophile said:

Deleted_User said:

VED is a nominal pollution tax and is nothing to do with the roads - local repairs are done by the council, national road works are done from central government funds.

But at least the government didn't suddenly start taxing existing cars at the new rates, which is what they are going to do with EVs.

Isn't that what governments have previously always done? I.e. new rates announced in budget, then applied to all existing cars.

They've periodically changed the banding system radically - from a flat rate, to bands based on engine size, to bands based on emissions etc. Existing cars have always seen the tax for their band increase each year, but completely new banding systems have only ever applied to new cars.

I'm willing to be corrected, but I can't recall a precedent for existing zero rated cars becoming non-zero rated.

They can remove a zero rating, for example in the case of retired emergency vehicles.  The tax class is changed to 'PLG' or whatever they call it now, and road tax is paid at the normal rate by whichever civilian owner takes the ex-police car (for example) on.  I don't see why it can't be done with electric cars.  

gbhxu

Stubod said:

..still wondering how they will recoup the tax that will be lost from petrol/diesel when most cars go electric. The tax generated from this still needs to come frrom somewhere?

...possibly a tax per mile using gps based tech??

I'd also factor in the type of road used.

Aretnap

Ditzy_Mitzy said:

Aretnap said:

Car_54 said:

Ectophile said:

Deleted_User said:

VED is a nominal pollution tax and is nothing to do with the roads - local repairs are done by the council, national road works are done from central government funds.

But at least the government didn't suddenly start taxing existing cars at the new rates, which is what they are going to do with EVs.

Isn't that what governments have previously always done? I.e. new rates announced in budget, then applied to all existing cars.

They've periodically changed the banding system radically - from a flat rate, to bands based on engine size, to bands based on emissions etc. Existing cars have always seen the tax for their band increase each year, but completely new banding systems have only ever applied to new cars.

I'm willing to be corrected, but I can't recall a precedent for existing zero rated cars becoming non-zero rated.

They can remove a zero rating, for example in the case of retired emergency vehicles.  The tax class is changed to 'PLG' or whatever they call it now, and road tax is paid at the normal rate by whichever civilian owner takes the ex-police car (for example) on.  I don't see why it can't be done with electric cars.  

That's a bit different though, when the zero rating is a function of the car's ownership and use rather than the car itself. Similarly a disabled owner can get an exemption from VED - but if he sells the car the new owner will have to pay VED at full whack. You can also change a vehicle's tax class by making significant modifications to it. None of these things are really comparable to making wholesale changes to the classes of existing vehicles, regardless of their use, ownership etc.

I'm certainly not disputing that the government can make retrospective change if it wants to, just agreeing with the earlier post that it's something they have mostly avoided doing in the past. For good reason - as far as possible people should be able to count on a reasonably stable tax regime when they're makeing major purchasing decisions.

billy2shots

the Expensive Car Supplement exemption for electric vehicles is due to end in 2025.

New zero emission cars registered on or after 1 April 2025 will therefore be liable for the expensive car supplement. The Expensive Car Supplement currently applies to cars with a list price exceeding £40,000 for 5 years




Does anyone have any further details/opinion on how the Expensive Car Supplement works for cars bought prior to 2025 but within the 5 year rule. 

Example - EV Costing £50,000 in 2022.

Will pay VED of £165 from April 2025. 

Will £355 also be paid for 2 years  for the Expensive Car Supplement part. 

Or can the government only implement that tax for 2025 cars. 


If it's the former then second hand prices could take a hit. 
Not too many people want a £25k second hand EV costing £520 VED. 

Car_54

billy2shots said:

the Expensive Car Supplement exemption for electric vehicles is due to end in 2025.

New zero emission cars registered on or after 1 April 2025 will therefore be liable for the expensive car supplement. The Expensive Car Supplement currently applies to cars with a list price exceeding £40,000 for 5 years




Does anyone have any further details/opinion on how the Expensive Car Supplement works for cars bought prior to 2025 but within the 5 year rule. 

Example - EV Costing £50,000 in 2022.

Will pay VED of £165 from April 2025. 

Will £355 also be paid for 2 years  for the Expensive Car Supplement part. 

Or can the government only implement that tax for 2025 cars. 


If it's the former then second hand prices could take a hit. 
Not too many people want a £25k second hand EV costing £520 VED. 

According to what you yourself have posted, it applies to "New zero emission cars registered on or after 1 April 2025 ".

billy2shots

Car_54 said:

billy2shots said:

the Expensive Car Supplement exemption for electric vehicles is due to end in 2025.

New zero emission cars registered on or after 1 April 2025 will therefore be liable for the expensive car supplement. The Expensive Car Supplement currently applies to cars with a list price exceeding £40,000 for 5 years




Does anyone have any further details/opinion on how the Expensive Car Supplement works for cars bought prior to 2025 but within the 5 year rule. 

Example - EV Costing £50,000 in 2022.

Will pay VED of £165 from April 2025. 

Will £355 also be paid for 2 years  for the Expensive Car Supplement part. 

Or can the government only implement that tax for 2025 cars. 


If it's the former then second hand prices could take a hit. 
Not too many people want a £25k second hand EV costing £520 VED. 

According to what you yourself have posted, it applies to "New zero emission cars registered on or after 1 April 2025 ".

I was only quoting an earlier reply and looking for further details if available. 

Grey_Critic

Government can change the rules whenever they want so applying VED to EVs is something we all knew could happen. Car Tax - VED and Fuel Duty whatever you want to call it produces around £35 Billion in income - people were forecasting that a mileage charge would come in at some point and once EVs outnumber Petrol/Diesel vehicles then they will need to do something to make up the shortage in tax.

macman

Worth pointing out that it's not fully retrospective. If you have an electric or hybrid car reg'd before April 2017 then the existing rates will still apply.

jimjames

Petriix said:

I don't have a problem with paying VED on my EV. But I do have a problem with pre 2017 diesel cars only paying £20 per year. It's completely irrational to retrospectively add VED to EVs but not do so at a similar or higher rate for more polluting vehicles.

It's equally daft for pre 2001 vehicles where a 1.6 litre Ford Fiesta pays the same as a 4 litre V8 car