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Treasury Confirms EV Per‑Mile Tax Will Include Overseas Driving From 2028

An odometer-based system avoids in‑car tracking, sharpening worries about fairness and EV uptake.

Overview

  • Exchequer Secretary Dan Tomlinson said location will be irrelevant under eVED, so miles driven abroad in UK‑registered EVs and PHEVs will be charged.
  • From April 2028, battery EVs will pay 3p per mile and plug‑in hybrids 1.5p, with bills paid alongside VED based on estimated usage and reconciled at an annual mileage check.
  • The Treasury projects a typical EV driver will pay about £240–£267 per year, and rates will rise with CPI once the scheme starts.
  • Lawyers warn the inclusion of foreign miles could face judicial review or human‑rights challenges on proportionality and purpose.
  • Octopus EV says it will absorb the levy for roughly 20,000 existing lease and tariff customers as the AA reports fragile consumer readiness for switching to electric cars.