Vehicle Excise Duty (VED) for Zero-Emission Cars — from 1 April 2025 (In force)
In forceSummary (facts):
- First year rate: £10 (for EVs first registered on/after 1 April 2025).[VED]
- Standard rate from year two: £195 (tax year 2025/26).[VED]
- Cars registered 1 Apr 2017 – 31 Mar 2025: £195 standard rate.[VED]
- Cars registered 1 Mar 2001 – 31 Mar 2017: £20.[DVLA]
- Expensive Car Supplement (ECS): Applies years 2–6 for list price > £40,000; £425/year in addition to the standard rate (2025/26).[DVLA]
| Registration window | Year 1 | Years 2–6 | Notes |
|---|---|---|---|
| EV first registered on/after 1 Apr 2025 | £10 | £195 (+ £425 ECS if list > £40k) | ECS applies Y2–Y6 |
| EV registered 1 Apr 2017 – 31 Mar 2025 | — | £195 (+ £425 ECS if list > £40k, Y2–Y6) | |
| EV registered 1 Mar 2001 – 31 Mar 2017 | — | £20 |
Footnotes: GOV.UK VED guidance[VED]; DVLA V149 (April 2025)[DVLA].
London schemes — Congestion Charge vs ULEZ
Congestion Charge — Cleaner Vehicle Discount (CVD) ends 25 December 2025 (In force / dated change)
In forceDated change- From 25 December 2025, EVs no longer qualify for the CVD and will be liable for the Congestion Charge when driving in the zone during chargeable hours.[TfL]
Ultra Low Emission Zone (ULEZ) (In force)
In force- Zero-emission vehicles remain exempt from ULEZ charges. ULEZ is London-only; VED and HMRC AER are UK-wide.[TfL]
2026 proposals (Proposed – not yet in force)
ProposedNeed scenario planning support? Read our detailed briefing on the London CC & ULEZ 2025 key dates for fleet actions, budgets and FAQs.
Footnotes: TfL CVD timetable[TfL]; TfL consultation pages/press notices[TfL].
HMRC Advisory Electricity Rate (AER) for EV mileage (In force)
In force- From 1 September 2025, HMRC splits the AER for EVs:
- 8p/mile for home charging,
- 14p/mile for public charging.
- Action for fleets: update expense policies, claim forms and per-mile assumptions; align your TCO and reimbursement logic with the split rates.[HMRC]
Footnote: HMRC company car fuel rate updates (September 2025).[HMRC]
What this means for mid-sized fleets (executive summary)
- Budget for VED from 2025/26, including ECS on cars >£40k (years 2–6).
- EVs remain exempt from ULEZ, but will pay Congestion Charge after 25 Dec 2025 (unless new discounts are confirmed).
- Update mileage reimbursement and policy documents to reflect AER 8p/14p split.
Deep-dive briefings: read our updates on VED for EVs (2025) and HMRC AER 2025 for calculators and scenario planning tools.