Evolving Legislative in 2025
Recent legislative updates have transformed the economic and regulatory framework for EV ownership and leasing.
As of 1st April 2025, all electric vehicles will be subject to Vehicle Excise Duty (VED). New registrations will pay £10 in the first year, then £195 annually thereafter. Vehicles registered between April 2017 and March 2025 will immediately move to the £195 annual rate. EVs with a list price above £40,000 will incur an additional £410–£425 annual supplement for five years, except those registered before April 2025.
Additionally, as of April 2025, the BiK rate for electric company cars will rise from 2% to 3%, followed by annual 1% increases through 2028. Even with these changes, EVs remain the most tax-efficient choice for company car schemes.
New legislation requires public EV charge points to meet enhanced standards, including:
- Contactless payment functionality
- Transparent pricing
- Improved reliability and accessibility. Violations can result in fines up to £10,000 per charge point, demonstrating the government's commitment to quality infrastructure.
London Congestion Charge Exemption Ending
Starting 25 December 2025, fully electric vehicles will lose their exemption from London's £15 daily Congestion Charge. This change takes effect on 2 January 2026, impacting all drivers in central London.
Zero Emission Vehicle (ZEV) Sales Mandate
The new ZEV mandate requires that 22% of new cars and 10% of new vans sold in the UK in 2025 must be fully electric. These percentages will increase yearly, targeting 100% zero-emission new vehicle sales by 2035. This regulation is expected to drive greater variety and affordability in EV leasing options.
The Strategic Advantages of Leasing in 2025
Leasing an electric vehicle in 2025 offers key benefits in this evolving landscape:
Cost predictability - Fixed monthly payments shield leases from market volatility and depreciation.
Regulatory flexibility - Leasing enables compliance with changing requirements and access to new technology.
Access to new models - Regular upgrades provide the latest in EV innovation and efficiency.
Favourable tax treatment - Despite recent increases, BiK rates for EVs remain significantly lower than for internal combustion engine (ICE) vehicles.
Driving Toward a Cleaner Future
Leasing an electric vehicle isn't just a financial decision - it's a contribution to a sustainable, low-carbon future. It enables individuals and businesses to support national emissions goals while maintaining operational efficiency and cost control.