The free road tax era for electric vehicles ended on 1 April 2025. Here is what you now pay, how the Expensive Car Supplement affects used buyers, and what is coming in 2028.
What you pay now
From 1 April 2025, all EVs pay Vehicle Excise Duty (VED). The rate depends on when the vehicle was registered.
Fully electric cars registered between 1 April 2017 and 31 March 2025 which covers the majority of used EVs currently on the market pay the standard annual rate.
Newer EVs registered from April 2025 pay a low first-year rate, then move to the standard rate from year two.
Older EVs registered before April 2017 pay a lower annual rate. For the current exact figures, always check gov.uk/vehicle-tax-rate-tables these are reviewed annually and the published rates are what count.
The Expensive Car Supplement | the used buyer trap
EVs with an original list price above a set threshold pay an additional annual supplement on top of the standard rate, for five years from the second year of registration.
The threshold was set at £40,000 for EVs registered from April 2025, then raised to £50,000 from April 2026 and applied retrospectively.
The critical point for used buyers, this supplement is based on the vehicle's original list price when new, not the price you pay on the used market.
A vehicle that originally listed at £52,000 but that you buy for £28,000 still carries the supplement for its remaining qualifying years.
Always check the original list price of any used EV before purchase and calculate the remaining supplement liability as part of your total cost of ownership.
The 2028 per-mile charge
The government has announced a mileage-based electric vehicle charge eVED planned from April 2028.
EV drivers will pay a per-mile rate on top of standard annual VED, with PHEV drivers paying a lower rate.
The rate announced at the time of writing is 3p per mile for EVs, rising annually with inflation. Implementation details are being finalised through government consultation.
