In the last blog I raised the potential for changes to insurance policies whereby cars are graded by several elements including the cost for repair. Which means that electric cars would have higher premiums because of the need to replace batteries if they are damaged in any way.
Having flagged that the government planned to “protect” the NHS by preventative measures to stop people getting ill, I suspect we will see some hefty increases in the budget at the end of this month. Big rises for taxes on tobacco, alcohol, a more significant sugar tax and I reckon vapes will be hit too.
Cars pollute the atmosphere which makes them another easy target to “protect the NHS” so I guess fuel will be taxed further and vehicle taxes will rise.
Last April we heard about how vehicle taxes for electric cars will be introduced from 1st April 2025.
Originally published in April, the government website page was updated in August with all categories being flagged for another change in 2025 – I guess we will get clarification on the new rates in the budget on the 30th October.
Currently all electric vehicles registered from 1st April 2017 will go from £0 to £190
“You will pay the standard rate. This is £190 for 2024 but is subject to change for 2025.”
Hybrid cars lost their reduction too:
“registered on or after 1 April 2017 - you will pay the standard rate (this is £190 for 2024 but is subject to change for 2025)”
If you have an expensive electric car there is the £410 on top of the standard amount for five years.
“For new electric vehicles with a list price exceeding £40,000, you will now need to pay the expensive car supplement from the second tax payment onwards. This applies to vehicles registered on or after 1 April 2025.”
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