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Policy & Tax·London

The UK Confirmed a 3p-a-Mile Charge on Electric Cars — and It Does Not Follow the Export

Providence Auto··9 min read
A modern car, illustrating the United Kingdom used vehicle market
Illustrative image. Not a photograph of any vehicle or taxation process referred to in this article.

Britain confirmed on 13 July 2026 that electric Vehicle Excise Duty will charge battery-electric cars 3 pence a mile and plug-in hybrids 1.5 pence a mile from 1 April 2028. For a reader outside the United Kingdom the interesting question is not what it costs a British driver. It is what a new annual running cost does to the price of the used British electric cars you buy.

The short version

  • Electric Vehicle Excise Duty applies from 1 April 2028 at 3p per mile for battery-electric cars and 1.5p per mile for plug-in hybrids.
  • The rates were confirmed in the Government’s consultation response of 13 July 2026, following a consultation that ran from 26 November 2025 to 18 March 2026 and drew over 5,000 responses.
  • Rates rise in line with the Consumer Prices Index from the 2029–30 tax year.
  • eVED is a charge on driving in the United Kingdom. It does not follow the car when it is exported.
  • What it does follow is the British used price, and that is the number that reaches an importer.

What was confirmed

3p

Per mile, battery-electric cars

1.5p

Per mile, plug-in hybrids

1 April 2028

In effect from

  1. 26 November 2025

    Consultation opens

    The Government consults on introducing an electric Vehicle Excise Duty, alongside draft legislation.
  2. 18 March 2026

    Consultation closes

    More than 5,000 responses are received.
  3. 13 July 2026

    Government response published

    Rates are confirmed as final at 3p a mile for battery-electric cars and 1.5p for plug-in hybrids, taking effect from 1 April 2028.
  4. 2029–30 tax year

    Indexation begins

    eVED rates rise in line with the Consumer Prices Index from this point, to maintain the value of the charge.

The stated rationale is straightforward and not disputed by anyone serious: fuel duty revenue falls as the fleet electrifies, and eVED is designed to recover part of it. The 3p rate is roughly half the fuel duty burden a petrol or diesel driver carries per mile, which is the Government’s answer to the charge that it penalises electrification.

What it costs a British driver

Annual mileageBattery-electric at 3pPlug-in hybrid at 1.5p
5,000 miles£150£75
8,500 miles£255£127.50
10,000 miles£300£150
15,000 miles£450£225
20,000 miles£600£300

Straight arithmetic on the confirmed rates. Standard Vehicle Excise Duty is charged separately and in addition. Rates rise with CPI from 2029–30.

Standard Vehicle Excise Duty sits on top of these figures rather than being replaced by them, so a British electric car owner from April 2028 faces both. We are not stating a standard VED figure here because it is uprated annually and the 2028–29 level is not yet set; GOV.UK is the place to confirm it closer to the date.

eVED does not travel with the car. It travels with the British market the car is sold in — and that is where it reaches you.

The part that matters to an importer

If you export a British electric car to Kenya, Ireland, New Zealand or Jamaica, eVED is not a cost you inherit. It is a charge on driving on British roads and it stops at the port. Nobody is going to bill you 3p a mile in Nairobi.

What does reach you is second-order and it is the more interesting effect. A new annual running cost applied to a whole category of vehicle is, other things equal, a downward pressure on what British buyers will pay for that category. Used British electric cars are the stock our readers buy out of the United Kingdom, and a market where owning one costs more is a market where buying one costs less.

Other things are rarely equal

We are describing a mechanism, not making a forecast. UK used EV prices are moved by supply from lease returns, by battery health perception, by the ZEV mandate’s effect on new-car discounting and by finance rates — several of which are larger than a 3p charge starting in eighteen months. Do not build a purchase plan on the assumption that eVED will hand you a discount.

Does this apply to you?

  • Driving an electric car in the United Kingdom: yes, from 1 April 2028. This is your charge.
  • Importing a used British EV to a market outside the UK: no, not directly. The charge does not follow the vehicle. Watch the UK used price instead.
  • Importing into Ireland: no. Ireland has its own regime, and the reliefs there are on their own timetable — the VRT relief for qualifying EVs runs to 31 December 2026, which is a much nearer deadline than this one. See our report on the Irish taper.
  • A UK dealer holding electric stock: yes, indirectly and from now rather than from 2028. Residual forecasts written before 13 July 2026 did not contain a confirmed charge; ones written after it should.

How this differs from the ZEV mandate

These are two separate mechanisms and they are frequently confused. The ZEV mandate places an obligation on manufacturers to sell a rising proportion of zero-emission vehicles; eVED places a charge on the person driving one. The first shapes what is available and at what discount; the second shapes what it costs to run. Our earlier report on the ZEV mandate review covers the supply side.

On the record

  • eVED rates of 3p per mile for battery-electric cars and 1.5p per mile for plug-in hybrids, confirmed in the Government’s consultation response of 13 July 2026.
  • Effective from 1 April 2028, with rates rising in line with CPI from the 2029–30 tax year.
  • The consultation ran from 26 November 2025 to 18 March 2026 and received more than 5,000 responses.

Still not established

  • The standard Vehicle Excise Duty rate for 2028–29. It is uprated annually and has not been set.
  • The collection mechanism in operational detail — how mileage is declared, verified and enforced.
  • The effect on UK used electric vehicle values. The mechanism is clear; the magnitude is not, and we are not forecasting it.

Move now or wait?

There is nothing to beat. April 2028 is eighteen months away and eVED is not a charge an importer pays, so there is no window closing on you and no reason to accelerate a purchase because of it.

The genuinely near deadline for a reader thinking about electric imports is Irish rather than British: the VRT relief of up to €5,000 for qualifying new EVs in Ireland is legislated to 31 December 2026, and registration — not order, not shipping — has to happen by then. That is fifteen months closer than eVED and it is worth real money.

  • UK dealers: update residual assumptions now, because the charge is confirmed rather than proposed.
  • Exporters of UK electric stock: watch British used prices through 2027 rather than acting on the announcement.
  • Irish buyers: 31 December 2026 is your date, not 1 April 2028.

Vehicle taxation in the United Kingdom is set by HM Treasury and administered by the DVLA and HMRC. Rates and dates above reflect the Government’s eVED consultation response published on 13 July 2026 and were checked on 10 September 2026. Standard Vehicle Excise Duty is charged separately and is uprated annually. Confirm your own position on GOV.UK before relying on any figure.

Sourcing a used electric car out of Britain?

We clear vehicles for export in the United Kingdom ourselves, handle NOVA and DVLA where they apply, and quote one landed figure to your port. Send us the specification and destination: start here. Our UK registration guide covers the process at the other end.

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