{"id":106194,"date":"2025-03-17T11:02:00","date_gmt":"2025-03-17T11:02:00","guid":{"rendered":"https:\/\/en.econostrum.info\/uk\/?p=106194"},"modified":"2025-03-17T11:01:21","modified_gmt":"2025-03-17T11:01:21","slug":"new-car-tax-regulations-changes-millions","status":"publish","type":"post","link":"https:\/\/en.econostrum.info\/uk\/new-car-tax-regulations-changes-millions\/","title":{"rendered":"New Car Tax Regulations: How Changes Will Impact Millions of Vehicle Owners"},"content":{"rendered":"\n<p>Starting from <strong>April 1, 2025<\/strong>, the Government will remove the exemption from Vehicle Excise Duty (VED) for all electric cars, marking the first time that zero-emission vehicles will be subject to this charge.\u00a0<\/p>\n\n\n\n<p>This move has sparked concern among experts, who argue that it could serve as a barrier to the adoption of electric cars, just as the Government aims to increase their numbers on the road. The change in policy is part of a wider effort by the Government to make road usage fairer, ensuring that all motorists contribute to the cost of maintaining the road network. <\/p>\n\n\n\n<p>However, the decision to include electric vehicles in the <strong>VED system<\/strong> could have unintended consequences for those who have already made the switch to electric driving.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The Introduction of the \u2018Luxury Car Tax&#8217;<\/h2>\n\n\n\n<p>In addition to the new VED charges, electric vehicle owners will also face the Expensive Car Supplement (ECS), commonly known as the luxury <a href=\"https:\/\/en.econostrum.info\/uk\/uk-drivers-face-new-dvla-car-tax-rules-april\/\" data-type=\"post\" data-id=\"106013\">car tax<\/a>. This additional charge applies to vehicles with a list price of more than <strong>\u00a340,000.<\/strong> For electric vehicles, this could mean an annual tax of \u00a3425 for up to five years, an amount that will likely deter many prospective buyers.&nbsp;<\/p>\n\n\n\n<p>According to new data from <a href=\"https:\/\/www.autotrader.co.uk\/\" target=\"_blank\" rel=\"noopener\">Auto Trader<\/a>, 56% of electric vehicles up to five years old currently listed on their platform exceed the \u00a340,000 threshold, compared to just 16% of petrol or diesel vehicles in the same category.<\/p>\n\n\n\n<p>The ECS was designed to target high-end vehicles, but it has come under scrutiny for disproportionately affecting electric vehicles. Experts argue that this tax could undermine efforts to push for a greater shift towards zero-emission vehicles, as it places additional financial pressure on electric car owners.&nbsp;<\/p>\n\n\n\n<p>Ian Plummer, Commercial Director of Auto Trader, highlighted that <a href=\"https:\/\/en.econostrum.info\/uk\/low-interest-loans-electric-vehicle\/\" data-type=\"post\" data-id=\"103144\">electric vehicles<\/a> are three-and-a-half times more likely to be impacted by the luxury car tax than internal combustion engine cars. This, he says, is \u201c<strong>unhelpful<\/strong>\u201d to the Government\u2019s broader goals of increasing EV adoption.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The Wider Impact on the Government\u2019s Green Targets<\/h2>\n\n\n\n<p>The Government&#8217;s push to increase the number of electric vehicles on the road is central to its efforts to meet climate targets. However, experts have warned that the new<strong> car tax changes<\/strong> could make it more difficult for the Government to reach its ambitious Zero Emission Vehicle (ZEV) mandate.&nbsp;<\/p>\n\n\n\n<p>The ZEV mandate, which requires manufacturers to ensure that 28% of all vehicle sales are electric by 2030, could face setbacks if potential EV buyers are discouraged by the rising costs.&nbsp;<\/p>\n\n\n\n<p>As Steve Gooding, Director of the RAC Foundation, pointed out, the tax changes could also affect those purchasing used electric cars, as these <a href=\"https:\/\/en.econostrum.info\/uk\/labour-targets-heavier-vehicles-new-tax\/\" data-type=\"post\" data-id=\"100802\">vehicles <\/a>depreciate quickly in value.<\/p>\n\n\n\n<p>This shift comes at a time when pressure is mounting on the Government to meet its EV targets and reduce carbon emissions from the transport sector. <\/p>\n\n\n\n<p>Critics argue that the Government must reconsider these <strong>new taxes<\/strong> or raise the threshold for the Expensive Car Supplement to avoid stalling progress on green transport initiatives.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In just two weeks, new tax regulations will come into effect, impacting millions of drivers, particularly those who own electric vehicles (EVs). <\/p>\n","protected":false},"author":10,"featured_media":106197,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[39,44],"tags":[],"class_list":["post-106194","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-energy","category-news","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33","no-featured-image-padding"],"_links":{"self":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/106194","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/comments?post=106194"}],"version-history":[{"count":3,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/106194\/revisions"}],"predecessor-version":[{"id":106202,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/106194\/revisions\/106202"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/media\/106197"}],"wp:attachment":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/media?parent=106194"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/categories?post=106194"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/tags?post=106194"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}