Electric Vans and Road Tax (VED)

Unlike the old days when battery-only vans were exempt from annual road tax, that perk has ended. From 1 April 2025, all electric vans (zero-emission light commercial vehicles) became liable for Vehicle Excise Duty (VED) at the same standard rate as petrol or diesel vans. That means there’s no longer a specific discount solely for being electric – you pay the usual light goods vehicle tax each year.

So if you’re budgeting for a new electric panel van or delivery vehicle in 2026, don’t factor in a road-tax saving over diesel just because it’s zero-emission. The government made this change to broaden the tax base as EV uptake rises.

There are more general commercial incentives (like reduced Benefit-in-Kind tax or grants for charging infrastructure), but for pure road tax, the exemption is a thing of the past.

London Congestion Charge & Discounts

Historically, electric vans benefitted massively from London’s Congestion Charge. Until late December 2025 they could register for the Cleaner Vehicle Discount (CVD) and enter central London free of charge.

However, from 2 January 2026 that free entry disappears: electric vans will have to pay the Congestion Charge, albeit at a lower rate than fossil-fuel vans if you sign up for automatic payment. Under the new rules:

  • Standard Congestion Charge rises to around £18/day.

  • Electric vans registered on Auto Pay pay around £9/day (about 50 % of the full rate).

So the electric van still gets a break compared with a diesel counterpart, but it’s no longer exempt. This change aims to keep congestion policies effective without overly penalising cleaner vehicles.

Beyond Congestion Charging

In addition to London, some cities have Clean Air Zones (CAZs) or Ultra Low Emission Zones (ULEZ) where compliant (often zero-emission) vans can avoid daily charges that older diesel vans pay. These are separate from the Congestion Charge and depend on local council policies.