New £410 car tax band that 'seven in 10 drivers will have to pay'

A new £410 car tax fee is set to hit seven out of 10 drivers in a harsh blow during the cost of living crisis. Research has indicated that 70% of electric vehicles (EVs) will be subject to an additional £410 annual 'luxury car' premium tax when the Vehicle Excise Duty (VED) exemption ends next year. Despite EVs traditionally being exempt from VED, this will change from 1 April 2025.

The previous Conservative government stated that EVs would be subject to car tax to make the system more 'fair'. As a result, 70% of EVs will face an extra £410 annual levy on 'luxury cars'. READ: Rough sleeper's chilling knife threat as he's caught stealing Pound Bakery baguettes Glyn Whitfield, 27, left staff terrified as he brandished a knife in the Hanley shop READ: Burslem town centre attacks leave stranger with life-changing injuries 'Powerfully-built' James Seddon, 25, has been handed a 10-year extended sentence Auto Express magazine has warned that this will "create further cost barriers for drivers looking to transition to EVs".

The publication has also urged the new Labour government to abolish the luxury car levy for battery-powered vehicles. A Freedom of Information request by Auto Express, now part of the Carwow Group, revealed that nearly a third (31%) of cars are already subject to the 'premium' VED rate. This currently stands at £410 a year on top of the £180 standard rate from years two to six of ownership, reports Birmingham Live .

Paul Barker, editor of Auto Express, said: .