What is the DVLA tax change for EVs in 2026?

From 2026, zero-emission cars pay £195 in Vehicle Excise Duty from year two. This DVLA tax adds a recurring annual cost that buyers must budget after the first year. It narrows the cost gap with petrol and diesel cars and could slow some UK EV purchases.

How does the UK congestion charge affect EV drivers?

London’s daily charge rises to £18 in 2026 and EV discounts are reduced. Regular city commuters in EVs will face higher daily costs, especially if they cannot rely on exemptions. These changes, alongside DVLA tax and parking rules, lift total urban driving costs.

What happens to company car BiK for EVs in April 2026?

The company car BiK on EVs increases to 4% from April 2026. This reduces the tax advantage versus some ICE models, particularly for higher list prices. Fleet managers may adjust orders, extend replacement cycles, or choose lower trims to manage payroll impacts.

Could these 2026 taxes hurt Tesla sales in the UK?

Yes, higher VED, an £18 congestion charge, and a 4% BiK could dampen retail and fleet demand. Tesla might respond with price adjustments, finance offers, or feature bundles. Monitoring UK registrations, fleet tender activity, and lead times will show how demand holds up.

Law and Government

TSLA Stock Today, January 03: UK EV Taxes, London Charges Lift Costs

ByHuzaifa Zahoor January 3, 2026January 3, 2026

DVLA tax changes in 2026 push UK electric vehicle costs higher, and that matters for Tesla (TSLA) investors. From year two, EVs pay £195 in VED, London’s congestion charge rises to £18 with slimmer EV discounts, and company car BiK lifts to 4% in April. These shifts raise total ownership costs, risking softer retail demand and slower fleet orders. We assess how these policy moves could weigh on deliveries, pricing, and the near-term setup for TSLA shares in the UK market.