Motor Vehicles: Excise Duties

(asked on 8th January 2025) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether she plans to review the list price at which motorists are required to pay additional car tax.


Answered by
James Murray Portrait
James Murray
Exchequer Secretary (HM Treasury)
This question was answered on 13th January 2025

The Expensive Car Supplement is an additional VED charge for new cars with a list price of £40,000 or more, which is payable in year 2 – 6 of a car’s lifecycle.

As set out at Autumn Budget 2024, the government recognises the disproportionate impact of the current VED Expensive Car Supplement threshold for those purchasing zero emission cars and will consider raising the threshold for zero emission cars only at a future fiscal event, to make it easier to buy electric cars.

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