Electric Vehicles: VAT

Treasury written question – answered at on 13 May 2024.

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Photo of Fabian Hamilton Fabian Hamilton Labour, Leeds North East

To ask the Chancellor of the Exchequer, what assessment he has made of the potential impact of changes to vehicle tax for electric and low emissions vehicles from 1 April 2025 on the number of purchases of those vehicles.

Photo of Gareth Davies Gareth Davies The Exchequer Secretary

From April 2025, electric and hybrid cars, vans and motorcycles will begin to pay VED in the same way as petrol and diesel vehicles. The anticipated impact is summarised in the Policy Costings document that was published alongside Autumn Statement 2022, and can be found here: https://assets.publishing.service.gov.uk/media/6375caf8e90e072848403c47/Autumn_Statement_2022_Policy_Costings_.pdf (p. 24).

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