New rules will see many drivers forced to pay additional tax on their vehicle from next year. The so-called 'luxury' car tax would see motorists forking out £410 each year. The move could discourage people from buying their first electric vehicle, Auto Express has warned.
DVLA data shows that almost 31 per cent of UK vehicles were already subject to the fee, which requires owners to pay £410 per year in Vehicle Excise Duty (VED). New vehicles priced at more than £40,000 see the charge apply for the model's first five years on the road. Electric vehicles were previously exempt but that will change on April 1, 2025.
READ MORE: Amazon Fire Stick crackdown sees Sky 'cut off' for thousands and 'more actions planned' The tax could also impact used car buyers trying to bag a bargain, according to Auto Express editor, Paul Barker. He said: "Regardless of the price paid for a used EV, the car will be liable if it was originally bought for more than £40,000 (the current level for the VED), and the vast majority are going to be caught up in this extra charge. "Some used EV buyers may not even know about the extra £410 a year cost until they go to tax their vehicles.
There are currently too many reasons for drivers to not make the switch, and this is yet another to add to the list." The Express reports that the luxury car tax currently applied to new vehicles with a retail price of over £40,000, which was a high-end budget for petrol cars, but a bracket that most of the popular electric vehicles models fell into. Telsa, one of the best-selling electric car brands in the UK, only has one model that falls short of the tax, whereas the likes of Ford and Toyota have none.
In wake of the sales of electric vehicles falling by 11 per cent during June this year, the Society of Motor Manufacturers and Traders (SMMT) has called on the Government to remove the tax..
