Northern Ireland

Electric vehicle owners to pay road tax from 2025

Zero-emission vehicles will lose their vehicle excise duty (VED) exemption from April 2025.
Zero-emission vehicles will lose their vehicle excise duty (VED) exemption from April 2025. Zero-emission vehicles will lose their vehicle excise duty (VED) exemption from April 2025.

ELECTRIC vehicle (EVs) owners in the north will be hit by a new tax from April 2025.

UK Chancellor Jeremy Hunt announced in his Autumn Statement that zero-emission vehicles will lose their vehicle excise duty (VED) exemption from that date.

"Because the OBR (Office for Budget Responsibility) forecast half of all new vehicles will be electric by 2025, to make our motoring tax system fairer I've decided that from then, electric vehicles will no longer be exempt from vehicle excise duty,” he said.

It means drivers who currently pay no VED will be charged up to £165 per year for cars and £290 for vans.

It’s estimated there are currently just over 10,000 plug in vehicles in circulation in Northern Ireland.

While some motor commentators said the new policy, combined with other incentives being scrapped and high energy bills, could deter would-be buyers, a Belfast-based industry insider said it provided much-needed clarity.

Graeme Thompson from EV infrastructure company Weev said: “The announcement that the Benefit in Kind rate for electric vehicles (EVs) will continue at ultra-low levels compared to that for traditional vehicles beyond 2025 is hugely welcome.

“It provides much-needed clarity for those wishing to switch company cars or fleets to EV, and is a major boost towards helping businesses on the road to net-zero.

“The rate will remain at 2% until 2025, increasing by one percentage point in each of the following three years to 2028, compared to a maximum of 37% for Internal combustion engineered vehicles.”