Motorists have been urged to take action to “save a couple of thousand pounds” before sweeping car tax changes come into effect.
From April 1, 2025, new Vehicle Excise Duty (VED) regulations will see electric vehicles taxed for the first time in an effort to establish a “fairer system”.
Speaking to GB News ahead of Christmas, Stuart Masson, editorial director at The Car Expert, advised: “For most buyers, this tax won’t make a huge difference. But for some, it could significantly affect affordability. If you’re in a position to act, buying before 1 April could save you a couple of thousand pounds in tax on a new EV.”
Mr Masson also emphasised the need for consumers to seek out the best deals when purchasing new electric vehicle models, adding: “In the first year of the new ZEV mandate, we’ve seen some car manufacturers offering huge discounts to help them hit targets at the end of the year.”
He predicted that next year, “We expect them to manage their stock better next year, so there are more likely to be good deals all year long.”
According to the upcoming VED bands, vehicles registered from April 1, 2025, will incur a £10 charge, with a standard rate of £195 from the second tax payment onwards. Electric and low emission cars registered between April 1, 2017, and March 31, 2025, will face the £195 standard rate, while those registered between March 1, 2001, and March 31, 2017, will be subject to a £20 rate, reports Birmingham Live.
Electric vehicles costing over £40,000 will also be subject to the Expensive Car Supplement. This luxury car tax, which amounts to £410 annually for five years, will total £2,050, starting from the vehicle’s second year of registration.
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