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UK Considers Adjustments to EV Tax Policy Following April Overhaul

The government may raise the £40,000 Expensive Car Supplement threshold for electric vehicles as drivers face new tax rates and financial pressures.

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Overview

  • The DVLA is actively urging electric and low-emission vehicle owners to verify their tax liabilities under the April 2025 Vehicle Excise Duty changes to avoid fines up to £1,000.
  • Nearly 250,000 electric vehicle owners avoided immediate tax payments by exploiting a legal early-renewal loophole before the new rates took effect.
  • The AA has called for a discounted tax rate for electric vehicles, warning that equalizing EV and petrol car taxes could deter adoption of greener vehicles.
  • Roads Minister Lilian Greenwood revealed in a leaked letter that the government may raise or eliminate the £40,000 Expensive Car Supplement threshold for zero-emission vehicles.
  • Drivers can use online tools, such as WeBuyAnyCar’s number plate checker, to determine CO2 emissions and calculate their updated tax obligations.