Changes to luxury car tax for EV

olbas_oil

In the budget RR announced that the threshold will be increased to £50k from April 2026. 
I am reading conflicting reports about whether this will be backdated.

I am looking to buy an ex demo EV with an original list price of about £41,000.

I had understood that if it was registered before April 2025 it would be  exempt, and so would just pay £195.But a 75 plate would have to pay the extra £410

How much will I have to pay in VED if I buy that car next week?

Keep_pedalling

It is retrospective so it the new rules apply to cars registered on or after 1st April 2025, which is good news for me with a leased Elroq registered in May. All EVs registered prior to that were exempt anyway.

https://www.gov.uk/government/publications/vehicle-excise-duty-for-expensive-car-supplement-threshold-increase-for-zero-emission-vehicles/increase-in-the-vehicle-excise-duty-expensive-car-supplement-threshold-for-zero-emission-cars

Woodstok2000

The Expensive Car Supplement (ECS) kicks in in year 2, and lasts for 5 years. The new exemption for EVs comes in on 01 April 2026 backdated to 01 April 2025, so anyone buying a new EV after 01 April 2025 wont pay ECS as it would only become due in year 2, when the exemption has take  effect.

If you buy and tax a new EV next week, you wont pay ECS in years 2-6.

As your car is ex-demo, a lot of this depends on when it was first taxed, and when the second year tax would be due.

Keep_pedalling

Woodstok2000 said:

The Expensive Car Supplement (ECS) kicks in in year 2, and lasts for 5 years. The new exemption for EVs comes in on 01 April 2026 backdated to 01 April 2025, so anyone buying a new EV after 01 April 2025 wont pay ECS as it would only become due in year 2, when the exemption has take  effect.

If you buy and tax a new EV next week, you wont pay ECS in years 2-6.

As your car is ex-demo, a lot of this depends on when it was first taxed, and when the second year tax would be due.

Only for EVs under £50K

Woodstok2000

Keep_pedalling said:

Woodstok2000 said:

The Expensive Car Supplement (ECS) kicks in in year 2, and lasts for 5 years. The new exemption for EVs comes in on 01 April 2026 backdated to 01 April 2025, so anyone buying a new EV after 01 April 2025 wont pay ECS as it would only become due in year 2, when the exemption has take  effect.

If you buy and tax a new EV next week, you wont pay ECS in years 2-6.

As your car is ex-demo, a lot of this depends on when it was first taxed, and when the second year tax would be due.

Only for EVs under £50K

Yes, as the OP is considering a £41k car I took that as given

Mildly_Miffed

It's not "from the second year". It's from when the vehicle is taxed for the second time.

When it's first taxed new, it's taxed according to CO2 emissions. As a BEV, that will have been £10. For a 255g+ car, it's £5.5k.

Then when the keeper changes, that tax is cancelled, and the new keeper has to tax it... The supplement would apply at that point.

photome

Does this apply to hybrids as well

Mildly_Miffed

photome said:

Does this apply to hybrids as well

Hybrids have always been subject to the same supplement as pure-ICE.

The exceptions were and remain for pure-BEV.

shera12

From what’s been confirmed so far, the £50k threshold bump for EVs won’t kick in until 1 April 2026 , and it only applies to the expensive car supplement part of VED. That change is not backdated to cover next week’s purchase. GOV.UK 

If you buy your ex-demo EV now with original list price ~£41k and it was first registered before 1 April 2025, it won’t pay the extra expensive car supplement at all; you’ll just pay the standard VED, currently around £195 a year when tax renews. BVRLAWebsite

Mildly_Miffed

@sheramber - that's not quite my reading.

From April 2025 - £40k+ BEVs become subject to supplement
From April 2026 - BEV threshold raised to £50k

If you find the reg of a post-April 2025 BEV, and put it into vehicleenquiry, you'll see that it does show as being liable now.
For example... WT25KSX

facade

It needs clarification, as I thought that it would be backdated too, otherwise who is going to buy a £40K+ EV now, when hanging on until next April will save them £4000 in expensive car tax (Well £850+VAT if you are leasing for 3 years I suppose.....)