VED Changes for Battery Electric Vehicles (BEVs) from 1st April 2025

IMPORTANT NOTICE: VED Changes for BEVs from 1st April 2025
Updated: 11:28 AM

Significant changes to Vehicle Excise Duty (VED) for Battery Electric Vehicles (BEVs) will come into effect on 1st April 2025. These changes could have a direct financial impact on your lease costs, especially for vehicles with an on-the-road list price above £40,000. Here’s everything you need to know to make an informed decision.

What’s Changing?

1. For Vehicles Registered by 31st March 2025:

   • First-Year VED: £0
   • From Year 2 Onwards: £195 per year
   • No Expensive Vehicle Supplement: Vehicles exceeding a £40,000 non-discounted on-the-road price will NOT incur the additional annual supplement.

2. For Vehicles Registered from 1st April 2025:

   • Vehicles Under £40,000 (On-the-Road List Price):
     • First-Year VED: £10
     • From Year 2 Onwards: £195 per year
   • Vehicles Over £40,000 (On-the-Road List Price):
     • First-Year VED: £10
     • From Year 2: £195 + £410 Expensive Vehicle Supplement per year (for up to 5 years).

How Does This Impact You?

For vehicles with an on-the-road price exceeding £40,000:

• Registering before 31st March 2025 avoids the £410 expensive vehicle supplement, saving £1,210 over a 3-year lease term (equivalent to £36 per month).
• Registering after 1st April 2025 will result in higher VED costs, which will be reflected in your lease payments.

What Should You Do Next?

• Check Your Vehicle ETA: Confirm when your vehicle is expected to be delivered. If possible, aim for delivery and registration before 31st March 2025 to minimize costs.
• Understand Pricing: Ensure you’re fully informed about the VED costs applicable to your chosen vehicle, including how its on-the-road list price may affect long-term costs.
• Consult Our Team: We’re here to guide you through these changes, provide updated quotes, and help you make the most cost-effective decision.