What taxes apply to electric vehicles and how could the Budget change that?
Published: 11/21/2025

Chancellor Rachel Reeves might introduce a new tax for electric vehicle (EV) drivers in the November Budget. Currently, EVs are not subject to the fuel duty that petrol and diesel cars pay. The government is considering implementing a "pay-per-mile" tax on EVs from 2028, which could impact drivers with an additional charge per mile. Additionally, the Treasury has weighed options for enhancing the taxes on EVs, which could affect the adoption rate of electric cars.



