Electric Car Drivers Brace for New ‘Road Tax’ from 2028
Electric and hybrid car owners face a fresh hit at the pumps – well, the roads – as Chancellor Rachel Reeves unveils a new per-mile tax starting in 2028. The Electric Vehicle Excise Duty (eVED) will scrap the current exemption, charging drivers based on distance travelled.
Motoring Taxes Ramp Up from 2026
The changes kick in early, with Vehicle Excise Duty (VED) for cars, vans, and motorcycles rising with inflation from April 1, 2026. High-polluting vehicles won’t get off lightly, facing even steeper hikes. Heavy goods vehicles will see similar tax rises, including a chunkier levy.
The threshold for the Expensive Car Supplement also climbs to £50,000—but only for zero-emission vehicles registered after April 1, 2025. That’s a win for those flaunting flash electric and hydrogen motors.
Company Cars and Plug-In Hybrids Caught in New Tax Nets
- From April 6, 2026, Employee Car Ownership Schemes will be taxed under Benefit-in-Kind rules. Enforcement, however, won’t start until 2030, with a grace period lasting to 2032.
- A temporary tax break for plug-in hybrids runs from January 2025 until April 2028, shielding owners from sudden tax spikes triggered by tougher emissions standards.
Industry Backing Meets Motorist Fury
Rachel Reeves insists these reforms will “boost our British car industry,” promising over £1.5 billion in EV funding and savings of £440 a year for more than one million drivers.
“This new per-mile charge is a total betrayal,” say critics. “Drivers were tempted into electric vehicles with tax perks, now they’re getting stung.”
Motoring groups warn this could slam the brakes on EV sales, just as the UK gears up to ban petrol and diesel cars from 2030.
Keep it tuned to Britannia Daily for all the latest on these jaw-dropping motoring tax shake-ups.
