This will apply to new and existing electric vehicles and is expected to raise £985m in 2026-27, rising to £1.59bn in 2027-28, according to the Autumn Statement.

Zero emission cars first registered on or after 1 April 2017 will be liable to pay the lowest first year rate of road tax which currently applies to vehicles with CO2 emissions 1 to 50g/km. This ranges from £10 to £25.

From the second year of registration onwards, zero emission cars will move to the standard annual rate.