UK drivers are being urged to take note as a significant change to vehicle tax rules is set to affect thousands—especially those planning to buy a new car this September.
September is traditionally one of the busiest months for car sales due to the release of new registration plates. But this year, new and returning buyers need to be aware of a rule change that has quietly reshaped the motoring tax landscape.
New DVLA Tax Rules, Electric Vehicles No Longer Exempt
For years, electric vehicle (EV) owners enjoyed exemption from paying Vehicle Excise Duty (VED). That changed in April, when the Government introduced a sweeping reform to the tax system. Now, EV drivers will pay tax just like petrol and diesel owners.
The shift marks one of the biggest overhauls in years, aimed—according to ministers—at creating a “fairer” system. But for motorists making the switch to electric, it could mean an unexpected hit to their annual costs.
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What the New Rates Mean for Drivers
- Brand-new EVs registered from April 1, 2025: £10 VED in the first year, rising to £195 annually thereafter.
- EVs registered between April 1, 2017 and 2025: A flat £195 per year.
- Petrol and diesel cars have also seen tax increases across the board.
Chris Adams, Group Operations Director at Brindley Group, explained: “From April 1, 2025, newly registered electric vehicles will pay £10 VED in the first year and then increase to £195 thereafter. Electric cars registered between April 1, 2017 and 2025 will pay £195 per year.”
Why the Change?
With the number of EVs on UK roads rapidly increasing—and the Government’s 2030 ban on new petrol and diesel car sales approaching—the Treasury says the move is about balancing tax revenue while ensuring all drivers contribute equally to road upkeep.
Three Weeks to Prepare
Motorists looking to buy in September still have time to adjust their budgets and factor in the changes. For some, the added cost won’t be a deal-breaker, but for others, it could influence whether they make the switch to electric now or later.
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