- At Budget 2025, the government announced the introduction of electric vehicle excise duty, a new mileage charge for electric and plug-in hybrid cars.
- Electric cars will pay half the equivalent fuel duty rate for petrol and diesel cars (3p), and plug-in hybrid cars will pay a reduced rate equivalent to half of the electric car rate (1.5p).
- The government issued a consultation on the introduction of the duty.
- Timing: the consultation was issued on 26 November 2025 and will close on 18 March 2026. The new duty will take effect from 1 April 2028.
Resources (click to open)
- Consultation on the Introduction of Electric Vehicle Excise Duty (eVED) (HMT, consultation, November 2025)
