As already announced in November 2022, the tax exemption for electric cars will cease to apply in the UK on April 1, 2025. For e-cars registered from this date, the minimum tax rate of ten pounds (currently the equivalent of about twelve euros) applies for one year, and from the second year of registration, the state then demands the standard tax rate of 190 pounds (228 euros) per year.
The former Chancellor of the Exchequer of Great Britain, Jeremy Hunt (Conservative Party), had justified the end of tax privileges in autumn 2022 with the desire for a fair motor vehicle tax system. For this reason, the tax exemption is also no longer applicable to older electric cars. E-cars registered in the period from 1 April 2017 to 31 March 2025 will also be taxed at the standard tax rate from 1 April 2025 and 20 pounds (24 euros) will be due for electric cars registered between 1 March 2001 and 30 March 2017.
No exemption from luxury fee
In addition, the basic exemption of electric cars from the luxury fee will no longer apply. From April 1, 2025, electric car owners will also have to pay an additional 410 pounds (493 euros) annually for five years for cars that have cost more than 40,000 pounds (48,101 euros) new.
For locally emission-free light commercial vehicles, the tax will be 335 pounds (403 euros) per year in the future – the same amount that owners of commercial vehicles powered by diesel or gasoline engines also pay. Locally emission-free motorcycles are now subject to the tax rate for the smallest combustion engine size – the rate is 25 pounds (30 euros) per year.
Seniors with a chance of a discount
However, seniors can hope for a tax reduction – regardless of the drive system their vehicle is equipped with. According to many Britons, older citizens are particularly dependent on their cars, especially if they live in the countryside. On the other hand, seniors often do not have a high income and cannot expect any significant increases in income. It is not yet known whether there will be vehicle tax reductions for seniors and if so, to what extent.
Result
For e-car owners, normality is slowly returning – the incentives for buying have often already been eliminated, and now the tax privileges are also disappearing. Austria has announced the end of tax privileges for electric car drivers, and the UK is now implementing its decisions from autumn 2022. In the medium term, most direct and indirect subsidies for electric cars are likely to be eliminated worldwide – e-cars are now simply a normal part of the vehicle fleet.