The United Kingdom intends to introduce a "per mile driven" tax for electric cars, starting in 2028.

The United Kingdom is preparing to implement a 'per mile driven' tax for electric vehicle drivers, estimated at approximately 320 euros per year. This measure, which will be announced on November 26, 2025, is intended to compensate for losses from fuel excise duties, as more and more drivers switch to electric vehicles. The tax will apply starting in 2028, after prior consultation.

Electric vehicle owners will pay an annual amount based on an average mileage of 14,300 km, while petrol and diesel car drivers currently pay around 700 euros per year in excise duties. The new tax will be integrated into the annual vehicle excise duty (VED) payment process, allowing drivers to estimate their mileage and pay in advance.

If a driver drives less than the estimate, the balance will be carried over, and in case of exceeding it, they will have to pay extra. Hybrid car drivers will benefit from a reduced rate. The Treasury will ensure that this scheme does not involve real-time monitoring of vehicles but will rely on annual estimates. This initiative could pave the way for more extensive per-mile taxation in the future.