The DVLA has issued a ’20-day’ warning to drivers regarding significant changes to the taxation system, which are set to take effect on April 1. For the first time, drivers of electric and low-emission vehicles will be required to pay road tax, having previously been exempt.
Posting on X on Wednesday, the DVLA directed people to further information about the changes, stating: “In 20 days, vehicle tax will change for electric and low-emission vehicles.”
The changes – now 19 days away as of Thursday – were confirmed by Chancellor Rachel Reeves at the Autumn Budget in October, having been first planned by her Tory predecessor, Jeremy Hunt, two years earlier.
With the change drawing near, the DVLA explained on its information page: “From April 1, 2025, registered keepers of electric, zero, or low-emission cars, vans, and motorcycles will need to pay vehicle tax in the same way as registered keepers of petrol and diesel vehicles. This change will apply to both new and existing vehicles.
“The new measure eliminates band A under the existing VED system, which is currently £0, and vehicles in this band will be required to move to the first band where a rate becomes payable.”
DVLA car tax changes on April 1, 2025
The DVLA clarified that electric, zero, or low-emission cars registered on or after April 1, 2025, will need to pay the lowest first-year vehicle tax rate of £10. From the second tax payment onwards, the standard rate of £195 will apply.
Electric, zero, or low-emission cars registered between April 1, 2017, and March 31, 2025, will pay the standard rate of £195. Electric, zero-emission, or low-emission cars registered between March 1, 2001, and March 31, 2017, will move to the first band with a VED value of £20.
Moreover, the £10 annual discount for hybrid and AFVs will be removed and the rate drivers will pay will depend on when the vehicle was first registered. If the vehicle was:
– registered before 1 April 2017 – this rate will depend on the vehicle’s CO2 emissions (check the current rates for these vehicles)
– registered on or after 1 April 2017 – you will pay the standard rate (this will be £195)
Most electric vans will move to the standard annual rate for light goods vehicles. Check the current rates for these vehicles.
Electric motorcycles and tricycles will move to the annual rate for the smallest engine size. Check the current rates for these vehicles.
Additional rate (expensive car supplement)
New electric and zero-emission vehicles registered on or after April 1, 2025, with a list price exceeding £40,000, will attract the standard rate, plus the expensive car supplement for the first five years from the start of the second licence.