Luxury car tax on EV's from April 2025

[Ecosseven]

The Government is going to charge the same 'luxury' car tax on EV's as ICE and Hybrid cars with list prices of over £40k from next month. The supplement of £425 / year applies for the first 6 years on top of the £195 regular VED rate.

edited to add - This only applies to new cars registered from 1st April 2025.

Do you think the VED charge of £620 will dampen the demand for higher priced EV's? Previously EV's paid no VED and with more and more cars exceeding the £40k threshold a lot of people will potentially be caught be this. Personally if I was looking for a daily driver in this age range I would probably make sure that the original list price was below the threshold unless it was something really special.

Edited by Ecosseven on Sunday 23 March 21:34

[rfn]

Perhaps I've misunderstood your post... the Luxury Car Tax will only apply to new EVs over £40k registered after 1st April. Any EV registered up to and including 31st March will only be charged the "standard rate".

[Ecosseven]

rfn said:

Perhaps I've misunderstood your post... the Luxury Car Tax will only apply to new EVs over £40k registered after 1st April. Any EV registered up to and including 31st March will only be charged the "standard rate".

Yes, you're quite right. I've edited my original post. Thanks.

My point still stands though - I do wonder how this change will influence people's view when considering a new higher value EV in 2025 and second hand EV's in the future. Will they just accept this additional cost or will it make them consider hybrids and ICE's as an alternative if there is no difference in VED.

[Mammasaid]

Already being discussed here - https://www.pistonheads.com/gassing/topic.asp?h=0&...

[jeremyc]

Mammasaid said:

Already being discussed here - https://www.pistonheads.com/gassing/topic.asp?h=0&...

This.