Overview
- The Government has confirmed Electric Vehicle Excise Duty will start in April 2028 at 3p per mile for battery electric cars and 1.5p for plug‑in hybrids, with rates linked to inflation.
- Drivers will pay the new mileage charge alongside their existing Vehicle Excise Duty, and officials state the system will not rely on in‑vehicle tracking devices.
- At the proposed rate, an EV driver covering 10,000 miles a year would pay about £300, with roughly £255 for an average annual mileage of around 8,500 miles.
- Vehicle Excise Duty rates will be uprated for inflation from April 2026, with the standard rate for most post‑2017 cars expected to be around £200, and implementation details for eVED are out for consultation.
- Reworked first‑year VED bands mean many high‑emission new petrol and diesel cars face up to £5,690 from April 2026, while the expensive‑car supplement threshold for zero‑emission cars rises to £50,000 from the same date.