Under the new rules new zero emission cars registered on or after 1 April 2025 will be liable to pay the lowest first year rate of VED (which applies to vehicles with CO2 emissions of 1g/km to 50g/km) currently £10 a year. From the second year of registration onwards, they will move to the standard rate, which is currently £180 a year.

Those with a list price of over £40,000 will pay the premium tax, currently £355 a year. You pay this rate for 5 years (from the second time the vehicle is taxed), so at current rates, second year tax would be £535.