Taxation of vehicles
10Removal of VED exemption for electrically propelled vehicles etc
1
The Vehicle Excise and Registration Act 1994 is amended as follows.
2
In Schedule 2 (exempt vehicles), in paragraph 20G (electrically propelled vehicles)—
a
in sub-paragraph (2)—
i
before paragraph (a) insert—
za
it is a light passenger vehicle (within the meaning of paragraph 1A(2) or 1GA(2) of Schedule 1),
zb
it is a light goods vehicle (within the meaning of paragraph 1H(2) of that Schedule), or
zc
it is a motorcycle (within the meaning of paragraph 2(3) of that Schedule).
ii
omit paragraphs (a) and (b), and
b
omit sub-paragraph (3).
3
In that Schedule omit paragraph 25 (light passenger vehicles with low CO2 emissions) and the italic heading before it.
4
In Schedule 1 (annual rates of duty)—
a
omit paragraph 1GB (exemption from paying duty on first vehicle licence for certain vehicles) and the italic heading before it,
b
in paragraph 1GE(1) (higher rates of duty for vehicles with a price exceeding £40,000) for paragraph (c) substitute—
c
either—
i
the vehicle was so registered on or after 1 April 2025, or
ii
it was so registered before that date and its applicable CO2 emissions figure exceeds 0g/km.
c
in paragraph 2 (motorcycles)—
i
in sub-paragraph (1)(a), after “centimetres” insert “or if the vehicle is electrically propelled”
, and
ii
in sub-paragraph (3), in the definition of “motorcycle”, after “vehicle” insert “of a description specified in regulations made by the Secretary of State”
.
5
In consequence of the amendments made by subsections (2) to (4), in Schedule 1—
a
in paragraph 1 (rates where no other rate specified)—
i
in sub-paragraph (2), after “case of” insert “an electrically propelled vehicle or”
, and
ii
in sub-paragraph (2A), after “case of” insert “an electrically propelled vehicle or”
,
b
in paragraph 1B (light passenger vehicles registered before 1 April 2017), in the Table, in column (1)—
i
after “Exceeding” insert “, or, in the first row, equal to or exceeding”
, and
ii
for “100” substitute “0”
,
c
in paragraph 1GC (light passenger vehicles registered on or after 1 April 2017)—
i
in Table 1, in column (1), after “Exceeding” insert “, or, in the first row, equal to or exceeding”
, and
ii
in Table 2, in column (1), after “Exceeding” insert “, or, in the first row, equal to or exceeding”
,
d
in paragraph 1J (annual rate of duty for light goods vehicles)—
i
in paragraph (a), after “van” insert “or a pre-2011 electric van”
, and
ii
in paragraph (b), after “van” insert “or a pre-2011 electric van”
, and
e
after paragraph 1M insert—
1N
For the purposes of paragraph 1J, a vehicle to which this Part of this Schedule applies is a “pre-2011 electric van” if—
a
the vehicle is first registered, under this Act or under the law of a country or territory outside the United Kingdom, on or after 1 March 2003 and before 1 January 2011, and
b
the vehicle is an electrically propelled vehicle.
6
The Graduated Vehicle Excise Duty (Prescribed Types of Fuel) Regulations 2001 (S.I. 2001/93) are revoked.
7
The amendments and revocation made by this section have effect in relation to licences taken out on or after 1 April 2025.