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UK to Tax EVs and Hybrids: 3p Per Mile by 2028

11/26/2025

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Story summary
  • The United Kingdom government will impose a mileage-based tax on EVs and plug-in hybrids starting April 2028.
  • Rates will be 3p per mile for EVs and 1.5p per mile for plug-in hybrids.
  • The measure aims to offset fuel duty declines projected to reach £12 billion annually by 2040.
  • The Office for Budget Responsibility estimates the tax could raise £1.4 billion yearly but may deter 440,000 EV sales.