Luxury road tax rates for electric vehicles after April 2025

Grumpy_chap

JamesNewton77 said:

Think I will just avoid the extras that will take it over 40k just to be safe

This is, really, another case of fiscal drag doing its thing.  When the premium VED rate was first introduced, £40k was really quite premium cars whereas now quite ordinary family cars can be caught by the premium VED rate.

In terms of stated Government objectives to move towards EV, I suspect that the premium VED also applying to EVs will skew the purchase decision back towards ICE.  I don't have data but my perception is that far more (proportionally) EVs have list prices over £40k than ICE.

JamesNewton77

I guess I'm gonna wait until after the budget or don't get the extras that will take the list price over £40k just to make sure

MattMattMattUK

henry24 said:

It's good that at last things are equalling out, cars should be bought on the needs of the driver not government subsidy 

The various UK governments have thrown huge subsidies at both the fossil fuel industry and the production of ICE cars, not increasing fuel duty also amounts to a subsidy for ICE drivers. The reality is the cost of owning and operating an ICE vehicle should already be far higher than it already is and it should continue to rise. 

Car_54

MattMattMattUK said:

henry24 said:

It's good that at last things are equalling out, cars should be bought on the needs of the driver not government subsidy 

The various UK governments have thrown huge subsidies at both the fossil fuel industry and the production of ICE cars, not increasing fuel duty also amounts to a subsidy for ICE drivers. The reality is the cost of owning and operating an ICE vehicle should already be far higher than it already is and it should continue to rise. 

Not increasing a penalty is not the same as providing a subsidy.