Luxury road tax rates for electric vehicles after April 2025

rainbow143

Luxury Car road tax means if your car cost more than £40,000 when new, you have to pay an extra £410 a year for five years, on top of the standard rate.

Therefore road tax is £600.

Zero-emission cars were exempt from the £40,000 rule as of 1 April 2020. But for new electric cars registered after 1 April 2025, owners will need to pay this supplementary rate.

According to Which magazine, this rule will not be backdated – therefore it will not apply to cars bought before April 2025.

Having looked a few cars recently, I can find no dealer that will confirm that the rule will not be backdated and the government website is equally as vague.

Does anyone know of any definite information about this situation please?  Many thanks.

Hoenir

Link for you

https://www.gov.uk/guidance/vehicle-tax-for-electric-and-low-emissions-vehicles

clive0510

OK so lets see with the new budget at the end of this month. several things will change. and I think you need to be watching closely. 

Iceweasel

£40,000 isn't exactly luxury anymore though, is it?
Another gov.uk trick to tax ordinary people - not just the wealthy. 
The wealthy couldn't care less.

Marvel1

Interesting, but no surprise really:

"From 1 April 2025, drivers of electric and low emission cars, vans and motorcycles will need to pay vehicle tax in the same way as drivers of petrol and diesel vehicles. This change will apply to both new and existing vehicles."

Marvel1

Iceweasel said:

£40,000 isn't exactly luxury anymore though, is it?
Another gov.uk trick to tax ordinary people - not just the wealthy. 
The wealthy couldn't care less.

The most I will pay for a car is £5000, paying £10,000 or more is luxary to me.

prowla

The problem with new cars for me is I'm not sure I like any of them.

My main beemer's 5 years old now, but I just don't like the newer ones (nor comparable ones such as Mercs & Jags); so I reckon I'll be keeping that for a while.

Going electric would require changes to my house & garden, so that's a big disincentive. If I was going to, I'd probably look at Tesla.

My toy car is coming up to 20 years old and I've no desire to replace it.

My spare/tip car is a clunker; it's currently a Suzuki, but I fancy a Land Rover when the time comes to replace it.

Hoenir

Iceweasel said:

£40,000 isn't exactly luxury anymore though, is it?

How many are actually purchased as opposed to rented? 

Nebulous2

Marvel1 said:

Interesting, but no surprise really:

"From 1 April 2025, drivers of electric and low emission cars, vans and motorcycles will need to pay vehicle tax in the same way as drivers of petrol and diesel vehicles. This change will apply to both new and existing vehicles."

That's for the standard rate - not the additional luxury car rate. 

Car_54

Hoenir said:

Iceweasel said:

£40,000 isn't exactly luxury anymore though, is it?

How many are actually purchased as opposed to rented? 

Is that relevant? The luxury tax is based on the manufacturer’s list price, whether it’s paid or not.

Badboi

Hoping the diesels that pay £30 get dragged into paying a proper road tax too…ridiculous that electric pays £180 ish and a 8year old diesel gets away with £20-£30 a year