Question to the HM Treasury:

To ask the Chancellor of the Exchequer, how the assessment for electric Vehicle Excise Duty will differentiate between (a) domestic and (b) overseas mileage for (i) electric vehicles and (ii) plug-in hybrids.

As announced at Budget 2025, the Government is introducing Electric Vehicle Excise Duty (eVED) from April 2028, a new mileage charge for electric and plug-in hybrid cars, recognising that EVs (electric vehicles) contribute to congestion and wear and tear on the roads but pay no equivalent to fuel duty. The taxation of motoring is a critical source of funding for public services and investment in infrastructure.

The Government has ruled out charging tax based on when or where people drive to protect motorists’ privacy. This means non-UK mileage driven by UK registered cars will fall into scope of eVED, as with fuel duty, which does not vary by basis of where a car is driven.

The vast majority of eVED will be paid on travel in the UK; there were an estimated 225 billion car miles in Great Britain in 2024, and over nine billion miles travelled by car in Northern Ireland in 2023.