The UK government is introducing changes to vehicle excise duty (VED), commonly known as car tax, in 2024. While many car models will see increases in their annual tax liability, electric vehicle (EV) owners will continue to benefit from a low tax rate of £10 until 2029-30. However, premium electric vehicles priced at £40,000 or more will be subject to an additional supplementary tax.
Reeves confirmed in the Budget that this will be retained until 2029-30, in a bid to incentivise drivers to switch to electric cars.suggests seven in ten new EVs registered in Britain will be hit by an existing supplementary tax. car tax ; this exists for any brand-new model across all fuel types with starting price of £40,000 or more.
The premium tax is applied from the vehicle's second year and currently adds £410 to the VED bill for five years in total. This is likely to rise with RPI from April.Audi A3 - increase of up to £1,650Credit: Getty The highest rate is attached to the petrol-powered 1.6T 160PS 6 Speed Manual 2WD N Line S, which starts from £34,500.The VW Golf celebrated 50 years on the road earlier this yearThe world's most iconic hatchback, which celebrated its 50th birthday in 2024, is another that will see a mighty increase in 2024.
CAR TAX ELECTRIC VEHICLES BUDGET UK TAXATION AUTOMOTIVE INDUSTRY
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