Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment his Department has made of the effectiveness of the expensive car supplement.

Cars with a list price when new exceeding £40,000 pay an additional supplement for five years as well as paying the standard rate of Vehicle Excise Duty (VED), which means those who can afford the most expensive cars pay more than the standard rate paid by other drivers.

The £40,000 threshold was set as a suitable way of distinguishing the more luxury end of the new car market. As around 80% of all new cars currently have a list price below £40,000, the Government considers this threshold to be suitable.

As with all taxes, the expensive car supplement is kept under review and any changes are considered and announced by the chancellor.