Get daily celeb exclusives and behind the scenes house tours direct to your inbox We have more newsletters Get daily celeb exclusives and behind the scenes house tours direct to your inbox We have more newsletters Seven in 10 British drivers will be forced to pay additional tax on their vehicle from next year when new rules come into force, according to new research. The so-called 'luxury' car tax for vehicles priced at more than £40,000 will impact at least 70 per cent of electric cars starting next year. The new report has warned that the termination of electric vehicle (EV) car tax exemptions from next year could potentially dampen demand for eco-friendly vehicles in the UK.
Starting April 2025, EV owners will be required to pay Vehicle Excise Duty (VED), also known as car tax, for the first time due to regulations introduced by the previous Conservative government. Not only will all EV owners face a first-year showroom tax on new models and a standard rate after, but seven out of ten battery-powered models will also be hit with a tax of £410 imposed on 'luxury' models for five years. Auto Express magazine has claimed this will 'create further cost barriers for drivers looking to transition to EVs' and has urged the new government to abolish the luxury car levy for battery-powered vehicles.
The tax changes mean electric cars that were previously exempt from paying the Expensive Car Supplement will now be in line with both petrol and diesel models. Paul Barker, editor at .