Tax hike for E-bikes: VED set to be introduced from 2025

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Electric motorcycles are set to start paying Vehicle Excise Duty (VED) from April 2025, following the Government’s Autumn Statement.

Plug-in motorcycles, electric cars, and vans will begin to pay the charge from April 2025 – a move driven by the increased uptake of battery-powered machinery on UK roads.

Although we will see more budgets and the potential for an election before the charges come into force, according to official documents from the Department for Transport zero emission motorcycles and tricycles will start to pay a modest £22 a year.

Plugging in an electric bike

Despite the figure being cheaper than for petrol-powered alternatives, it’s another blow for the market.

Back on December 15, 2021, the DfT announced reductions to the plug-in grant scheme, meaning battery motorcycles priced up to £10,000 would now receive 35% off, up to a max of £500.

Mopeds would get 35% off, up to a value of £150. Prior to this, all new road-registered electrics received a price reduction of £1500 or 20% – whichever was smallest at the point of sale.