Electric vehicle (EV) owners in England will soon be subject to a new mile-based tax.
Announced as part of Chancellor Rachel Reeves’ Autumn Budget; battery electric cars will be charged at 0.03 GBP per mile, and plug-in hybrid cars will be charged at 0.015 per mile from April 2028.
Payable each year, the tax will be compulsory alongside excise duty.
The new tax could see average battery electric car drivers (covering roughly 8,500 miles per year) charged 255 GBP per year in 2028-29.
Set to raise around 1.4 billion GBP; the new levy is intended to offset around a quarter of the 0.6% of GDP in revenue anticipated to be lost from fuel duty by 2050 due to the shift to EVs, as well as contribute to road repairs and maintenance.
The charge is expected to be set at around 50% of the current fuel duty rate currently paid by petrol drivers.
More information from the Autumn Budget is still to come.
