The DVLA has axed free street tax and can now cost drivers £200 as an alternative.
Drivers will not get free automotive tax (Picture: Getty)
New £200 prices are being levied towards EV drivers after a DVLA change that began in April.
The Driver and Car Licensing Company has confirmed a car tax change which suggests electrical automobiles not qualify at no cost street tax.
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It implies that as of April 2026, drivers of electrical automobiles will begin paying a £200 a 12 months flat price for street tax, nevertheless it might rise even increased relying on the worth and age of the automotive.
The RAC says: “Electrical automobiles not qualify at no cost street tax, which suggests the entire UK’s EV drivers are required to pay for automotive tax (formally referred to as VED or Car Excise Responsibility).
“How a lot you’ll pay to tax your electrical automotive will depend upon the 12 months it was first registered and its authentic checklist worth.”
However the associated fee might rise even increased, because of the Costly Automobile Complement, which may add as much as one other £640 a 12 months to your automotive tax.
The RAC provides: “For many electrical automotive drivers, the price of street tax (VED) in 2026 is £200 per 12 months.
“Drivers of dearer EVs additionally should pay an Costly Automobile Complement, or ‘Luxurious Automobile Tax,’ yearly for 5 years. This provides £440 a 12 months from the second 12 months of the automotive’s registration, and takes the whole annual VED as much as £640.
“The Costly Automobile Complement used to use to all automobiles with an inventory worth (the on-the-road automotive worth) over £40,000. This threshold was elevated to £50,000 in November 2025 – however just for electrical automobiles. This enables extra EVs to be exempt from the additional cost.
“In case your electrical automotive was registered earlier than April 2017, your annual VED will likely be £20.”
It comes as EV gross sales surge following the latest petrol and diesel worth spikes attributable to the conflict in Iran.
Renault stated virtually half of its gross sales in April had been EVs, in contrast with one in three a 12 months in the past and one in 10 two years in the past.
Views of the EV sections of its web site are up 42% for the reason that conflict within the Center East started on February 28, in contrast with the interval from the beginning of 2026 to that time.
Iran’s continued stranglehold on tankers passing by the Strait of Hormuz means the common worth of a litre of petrol and diesel at UK forecourts is 24p and 47p respectively dearer than earlier than the battle began.
Adam Wooden, Renault’s UK managing director, instructed the Press Affiliation: “We’re seeing a seismic uptick in demand for electrical autos within the UK.
“The short-term state of affairs is actually proving a catalyst to rising the extent of demand that was rising for electrical autos.
“Prospects, understandably, are methods to mitigate the rises in gas costs and to cut back their publicity to the volatility that we’re seeing in provide and pricing (of gas).”
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