DVLA Sets £50,000 Limit for Electric Car Tax

The UK's vehicle tax system has changed.

Drivers thinking of buying an electric car should check the £50,000 limit.

Electric cars costing £50,000 or less no longer pay extra tax, which could save drivers £2,200 over five years. This change happened after the government updated the vehicle tax system in April 2025.

The government raised the tax limit from £40,000 to £50,000 for electric cars after the car industry complained.

The DVLA says electric cars priced £50,000 or under do not pay extra tax if they were first registered from April 1, 2025. This is important for people buying electric cars.

The government has made a small change to the tax system.

The extra tax for expensive cars is paid for five years, starting from the second year.

For electric cars over £50,000, the tax bill is different now.

The £50,000 limit is based on the car's original price, including any extras, not the price you pay.

Some luxury electric cars still pay extra tax, like the BMW i5 and certain Tesla models. This is because they cost more than £50,000, even with discounts.

The government changed the tax rules for electric cars in April 2025. Before, electric cars did not pay tax, but now they do.

New electric cars pay £10 in the first year and £200 each year after that. Older electric cars also pay £200 per year now.

The government raised the tax limit to £50,000 because electric cars are often more expensive than petrol and diesel cars, and many family electric cars would have been taxed as luxury cars.

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