It was announced in the 2022 Autumn Statement (17 November 2022), that HM Treasury planned to introduce vehicle excise duty (VED) for electric vehicles, including cars, vans and motorcycles, from April 2025.
On 14 August 2024, the government updated its guidance about changes to the VED rates, so that from 1 April 2025, drivers of electric and low emission cars, vans and motorcycles will need to pay vehicle tax in the same way as drivers of petrol and diesel vehicles. This change will apply to both new and existing vehicles.
Currently electric vehicles are exempt from VED if the electricity comes from:
- An external source, such as a private or public chargepoint.
- An electric storage battery not connected to any source of power when the vehicle is moving.
- Hydrogen fuel cells.
Most electric vans will move to the standard annual rate for light goods vehicles, which this year is set at £335 per annum (if paid in a single payment). More information about van VED rates is available here.
Information about the VED rates to be paid next year by electric and low emission cars, hybrid and alternatively fuelled vehicles (AFVs), expensive car supplements and electric motorcycles is available here.
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Van market returns to growth in August
Figures released on 5 September by the Society of Motor Manufacturers and Traders (SMMT) show that new light commercial vehicle registrations returned to growth in August with an increase of 1.7% (16,575 units), and the best August performance since 2021.
The market for smaller-sized vans, weighing up to and including 2.0 tonnes, continued to increase, up 24.5% to 427 units as new models drove demand. Registrations of medium-sized vans, weighing greater than 2.0 to 2.5 tonnes, grew by 1.9% to 2,771 units, while those of the largest vans, weighing greater than 2.5 to 3.5 tonnes, increased by 1.8% to 11,753 units, remaining the most popular van segment with a 70.9% market share.
Year-to-date, the van market is up 2.7% to 218,884 units, with all segments recording growth.
Despite the overall market growth, battery electric van (BEV) registrations fell for a third successive month this year and fifth time overall, with 908 BEVs registered, down almost a third (-30.3%) year on year. BEVs accounted for just 5.5% of all new vans in August, a fall from 7.9% in August 2023. Over the year-to-date, BEV volumes have fallen by -9.5% and market share has declined to 5.1% – barely half the 10% zero emission vehicle mandate target for 2024.
Logistics UK attends Business Day at Scottish National Party Conference
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