On average, older UK drivers, particularly those over the age of 70, drive approximately 1,665 miles per year, which translates to a total charge of £49.95 over a 12-month period. The payment will be integrated into the existing Vehicle Excise Duty System, which is operated by DVLA.
We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. Read our Privacy Policy
READ MORE: Rachel Reeves accused of ‘confused’ message as drivers hit with £300 charge
READ MORE: Millions of drivers will be hit with new pay-per mile charge
Mileage readings will be based on in-vehicle odometers, which the government acknowledges can be subject to tampering, or “clocking”. It also recognises that introducing the tax “may increase the likelihood of motorists choosing to clock their vehicles”, and revealed that it was looking at ways to mitigate this, reports BBC News.
According to the Office for Budget Responsibility, the new charge will generate £1.1 billion in the financial year it is implemented, before increasing to a contribution of £1.9 billion by 2030-31.
However, the figures depend on how many people purchase electric cars over the five-year period, as the report states that the yield “is uncertain”.
All UK-registered EVs are applicable to the new tax, regardless of where they are being driven in the world, while EVs registered abroad but driven in the UK are exempt.
From 2030, all new cars will have to be electric or hybrid, when a ban on the sale of new petrol and diesel cars will be introduced. However, some experts worry that the new tax could make electric cars less appealing.
The OBR said that the new levy was “likely to reduce demand for electric cars as it increases their lifetime cost”.
It added: “To meet the mandate, manufacturers would therefore need to respond through lowering prices or reducing sales of non-EV vehicles.”
It’s been predicted that the charge will result in a reduction of around 440,000 electric car sales. However, other Government policies could help offset around 320,000 of those.
Additionally, under the Vehicle Excise Duty, which came into effect for electric vehicles (EVs) this year, the tax for buyers of luxury electric cars will rise in April 2026. Specifically, it will increase from £425 to £440 per year for vehicles costing more than £50,000, up from the previous threshold of £40,000.
SEARCH
CONNECT WITH US
TODAY’S PAPER
See today’s front and back pages, download the newspaper, order back issues and use the historic Daily Express newspaper archive.
EXPRESS.CO.UK
Daily Express uses notifications to keep you updated
