Despite Autumn Budget Announcement EV Drivers Still Better Off
During his Autumn 2022 budget statement, Chancellor of the Exchequer Jeremy Hunt announced that, from 2025, electric vehicles (EVs) will no longer be exempt from Vehicle Excise Duty (VED).
- Zero-emission cars registered from 1 April 2025 will be liable for the lowest first-year VED rate, which is currently set at £10. From the second year onwards, EVs will be levied at least £165 per year. Owners of zero-emission vehicles registered between 1 April 2017 between 31 March 2025 will also be required to pay the latter, standard rate.
- If you drive an EV with a list price of £40,000 or more, you’ll no longer receive a (minimum) £355 ‘expensive car supplement’.
- Zero/low-emission cars currently in VED ‘Band A’, and which were registered between 1 March 2001 and 30 March 2017, will move to ‘Band B’, which is currently set at £20 per annum.
- Hybrid vehicle owners will no longer receive a VED discount of £10 per year.
- Zero-emission light commercial vehicles will be liable for a £290-per-year levy.
- The rates for Benefit-in-Kind (BiK) taxation are due to rise too – by between one and five percent (EVs) and 21 percent for ultra-low-emission cars.
Electric vehicles remain more affordable to run
No one enjoys cost and/or tax increases but the advantages of driving a low/zero-emission vehicle will continue to outweigh that of driving a petrol/diesel-only car. This is particularly true considering fuel prices are predicted to rise by 23 percent in Spring 2023, according to the Office of Budget Responsibility (OBR).
To learn more about how hybrid and electric vehicles can save you more, please get in touch with your local Birchwood Group dealership today.
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