March is approaching, and with it comes one of the busiest times in the UK automotive calendar – the launce of the new ’25 plate.
Not only does the latest registration mark the arrival of brand-new models in showrooms across the country, but it also has wider implications for drivers when it comes to vehicle valuations, extended car warranties, and road tax changes.
Key facts at a glance:
- New ’25 plate car registration launches in March 2025
- EV road tax exemption ends in April 2025
- From April 2025, all EVs will be subject to Vehicle Excise Duty
- Expensive Car Supplement applies to all EVs over £40,000
- Tax rates vary by registration dates
- Re-taxing eligible EVs in March 2025 could secure an extra year of tax-free driving
- EV adoption is growing, with 13% of drivers planning to go electric within the next 12 months
What is the purpose of a number plate?
Numberplates are first and foremost a form of vehicle identification. They play a key role in:
- Enforcing the law
- Buying and selling vehicles
- MOT and service records
- Vehicle tax status
Each unique registration is linked to essential details about the car, making them vital for keeping the UK’s roads regulated and safe.
Why is the ’25 plate launch significant?
The new registration is particularly important for buyers considering an electric vehicle.
March 2025 will be the last opportunity to purchase an EV before new road tax rules take effect. Currently, EVs are exempt from paying Vehicle Excise Duty (VED), but this benefit ends in April 2025 [1].
For drivers looking to maximise savings, the timing of the new plate is crucial.
EV owners and the impact of the new VED rules:
The release of the ’25 plate comes just before new EV tax laws are introduced by Chancellor Rachel Reeves. [2]
From April 2025:
- All EVs will pay VED
- Cars priced over £40,000 will also be subject to the Expensive Car Supplement [3]
This means EV drivers could face up to £400 extra per year for five years, on top of standard road tax charges. The Expensive Car Supplement is designed to make owners of higher-value cars, often associated with greater emissions, pay a fairer share towards road tax. [4]
Breakdown of EV tax changes:
The new rules apply to all EVs registered after March 2001: [5]
- New EVs (from 1st April 2025):
First year rate: £10
Standard annual rate (from year two): £195
- Existing EVs (registered 2017 – 2025):
Standard rate: £195
- Older EVs (2001 – 2017):
Annual rate: £20
The shift marks the end of a major incentive to adopt electric vehicles, which could influence some buyers to reconsider.
Can EV drivers will save money?
Yes – Money Saving Expert Martin Lewis has advised that EV drivers registered between April 2017 and March 2025 could save by re-taxing their vehicles in March 2025. [6]
This allows them to secure an extra year of tax-free motoring, effectively postponing their first VED payment until March 2026.
Note: Vehicles can only be re-taxed up to two months before their renewal date.
The rise of EVs in the UK:
According to the SMMT, EVs are gaining market share but adoption still falls short of Government targets.
Warrayntywise’s recent survey shows:
- Only 2% of people currently own an EV [7]
- 70% still rely on petrol or diesel [8]
This signals steady growth, helped by improving charging infrastructure and falling costs, though concerns over affordability and running costs remain.
Be future-ready with an EV warranty:
At Warrantywise, we understand that unexpected repair costs can take the shine off owning a new car – whether petrol, diesel, hybrid or electric.
That’s why our extended car warranties, including dedicated EV warranty plans, are designed to give you:
- Financial protection against costly repairs
- Peace of mind when things go wrong
- Confidence to enjoy your car without worry
Drive with confidence, and be future-ready with Warrantywise.
Discover more.
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Sources
[2] What is the luxury car tax supplement? Expensive car VED explained – What Car 11th February 2025
[7] *The survey data cited in this guide was compiled from research conducted by OnePoll in 2024. The survey was based on responses from a representative sample of 2,000 UK: Car owners.