Car tax changes will see Ford, BMW and Mercedes drivers save £2,220 - full list of 23 vehicles
April 2, 2026
GB News
Drivers looking to buy a new electric vehicle could benefit from the Chancellor's new tax rules, which could save them thousands of pounds a year.Labour has overseen the rollout of new car tax changes, including hiking the rate of Vehicle Excise Duty for petrol, diesel and electric car owners.Chancellor Rachel Reeves confirmed changes to the Expensive Car Supplement in last year's Autumn Budget, in a major boost for drivers interested in an electric vehicle.The so-called luxury car tax imposes a fee worth hundreds of pounds on drivers who buy a vehicle with a list price of £40,000 or more from the second year of ownership.
TRENDING Stories Videos Your Say However, the Chancellor has increased the threshold associated with the tax for zero emission cars, hiking it from £40,000 to £50,000.Rachel Reeves confirmed that the ECS threshold would jump to £50,000 for zero emission vehicles registered from April 1, 2025, onwards, despite the rules launching on April 1, 2026.The Expensive Car Supplement also rose in line with inflation, meaning drivers now need to pay £440 a year for five years after the start of the second licence.The new changes could incentivise millions of drivers to invest in an electric car, with total savings of £2,200 over five years.New data suggests that 23 zero emission models will no longer be subject to the annual surcharge after the threshold was hiked to £50,000.Commenting on the change, Siobhan Doyle, consumer writer at Carwow, emphasised how drivers now have a wider choice of electric cars with lower ownership costs.She said: However, it's important to note that the expensive car supplement is implemented based on the purchase price of the car, meaning that not all versions of a model will necessarily be eligible. For example, if you go for a higher-specification trim, bigger battery, or simply pile on the optional extras, you could be charged extra if the car’s value exceeds £50,000.LATEST DEVELOPMENTSPetrol and diesel drivers brace for highest-ever fuel costs after 'record monthly price hike'M23 crash: Police shut motorway near Gatwick for 'several hours' as drivers brace for Easter traffic chaosFuel price mayhem ignored as millions of drivers prepare to travel over Easter bank holidayElectric cars that are no longer eligible for the Expensive Car Supplement taxAudi Q4 e-tronAudi Q4 Sportback e-tronBMW iX1BMW iX2BYD SealBYD Sealion 7Cupra TavascanFord CapriHyundai Ioniq 5Hyundai Ioniq 6Kia EV4 FastbackLexus RZMercedes-Benz CLA ElectricMercedes-Benz EQAMercedes-Benz GLB ElectricMG IM6Peugeot E-3008Peugeot E-5008Polestar 2Skoda Enyaq CoupeTesla Model 3 PremiumTesla Model YTesla Model Y Premium Our Standards: The GB News Editorial Charter
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