During the Autumn Statement, Jeremy Hunt announced that beginning in 2025, electric vehicles will no longer be exempt from the Vehicle Excise Duty (VED). The VED is calculated by considering engine size, year of registration and level of CO2 emissions, and because EV’s do not produce tailpipe Co2 emissions, drivers did not have to pay VED.
The Government have published their ‘Consultation on a zero emission vehicle (ZEV) mandate and CO2 emissions regulation for new cars and vans in the UK’ which proposes legislation that would punish car manufacturers who fail to switch their output over to zero emission vehicles quickly enough.