Summary
The UK may introduce a new tax for electric vehicle (EV) drivers in its upcoming budget. Currently, EVs pay certain vehicle taxes but not fuel duty like petrol and diesel cars. The government aims to create a fairer system for all drivers as the country works towards its goal of reducing emissions.
Key Facts
- The UK government plans to announce a new tax for electric vehicles in its November budget.
- Fuel duty applies to petrol and diesel cars, but there is no direct equivalent for electric vehicles.
- Starting April 2025, electric vehicles began paying Vehicle Excise Duty.
- A "luxury car tax" of £425 applies to electric vehicles costing more than £40,000.
- A "pay-per-mile" tax on electric vehicles might start in 2028, potentially adding costs based on distance driven.
- Electric vehicle owners in London will need to pay a congestion charge from 2026.
- The UK plans to ban the sale of new petrol and diesel cars by 2030 to meet emission reduction goals.
- The government offers grants up to £3,750 for new electric vehicles priced at £37,000 or below to help with the transition.
