Drivers and those buying cars face a STEALTH TAX that changes regular motors into "luxury cars" and adds an extra £410 charge. Regular cars like the VW Golf are being dragged into the expensive car supplement, it has been warned. Introduced in 2017, the Expensive Car Supplement (ECS) requires owners of "luxury" cars to pay more road tax.
According to Auto Trader , the average price of a new car was £39,308 as of last year - up around £12,000 from five years before. Owners of cars subject to the ECS have to pay £410 on top of their normal road tax for each of the first five years of registration. The exact amount paid in total depends on when you car was registered, but for those from after 2017 will see a petrol or diesel motor cost £600 a year.
READ MORE Met Office issues two-word update over August heatwave after 31C scorcher Mike Hawes, chief executive of the industry body, the Society of Motor Manufacturers and Traders (SMMT), said: "The expensive car supplement has been unchanged since its introduction some seven years ago, meaning many more vehicles that were considered normal are now luxury." Ian Plummer, from Auto Trader, added: "To help aid a smooth and fair transition, we’d like to see the threshold raised to £50,000 for used electric cars – or if we really want to see a government walking the walk when it comes to a fairer, greener future, remove the ECS for used electric cars altogether." However, an exemption will remain in place for "historic vehicles".
Paul Daly, Director of InsureDaily.co.uk warned many motorists were at risk of being slapped with the heavier bills and said: “For those drivers who own vehicles under seven years old and were valued at over £40,000 at the time of their registration, is that in addition to standard road tax rate, they will also be charged the Expensive Car Supplement fee, which also has increase to £410 this year, compared to £390 last year.
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