Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether he has made an assessment of the feasibility of establishing a new lower band for electric cars under the Expensive Car Supplement.

The Expensive Car Supplement applies to all cars with a list price of more than £40,000 – which captures approximately the 20% most expensive cars.

The Expensive Car Supplement exemption for EVs is due to end in 2025. New zero emission cars registered on or after 1 April 2025 will therefore be liable to pay the supplement where eligible. However, there will remain reduced rates for EVs for their first year of registration.

Like all taxes, the Chancellor keeps the Expensive Car Supplement under review.