List of cars exempt from ‘luxury tax’ from April | Tech News

A shake-up in car tax rules in April 2026 means that drivers of sure higher-end autos no longer face an extra £425 annual charge. Fresh analysis from Dick Lovett has uncovered simply how many motorists stand to gain from the new tax reforms.

Electric autos have been beforehand exempt from the ‘luxurious vehicle tax’ — formally often called the Expensive Car Supplement — nonetheless it was beforehand introduced that EVs priced at £40,000 or more and registered after April 1, 2025, have been subject to paying the extra £425 per yr. However, this restrict was elevated to £50,000 from April 1, 2026, that means drivers with common fashions priced between £40,000 and £50,000 will now keep away from this further charge.

Examining UK vehicle registrations since April 1, 2025, motor group Dick Lovett mentioned it had calculated that at the least 475,836 drivers would benefit from this tax change, saving £425 a yr. Drivers would have needed to pay this tax for a five-year period, beginning from the second yr of their car’s “life”, that means drivers now exempt will save a complete of £2,125 over 5 years.

Scrutinising the 116 EV fashions throughout 23 ranges that fall within £40,000 to £50,000, Dick Lovett mentioned it discovered 475,836 registered autos at the moment are excluded from the new luxurious car tax. While sure fashions within a vary at the moment are exempt, others stay above the tax threshold, making it important to confirm particular person fashions relatively than total ranges.

For occasion, motorists buying the BYD Sealion 7 Comfort will now keep away from the £425 annual charge, with an on-road price of £46,990, whereas the remaining Sealion 7 variants will proceed paying the charge. Nevertheless, some full ranges at the moment are exempt from the tax. BMW’s iX1 and iX2 ranges now sit beneath the luxurious car tax threshold when contemplating customary specs.

Models exempt from luxurious vehicle tax after April 1 2026 change

• Audi This fall e-tron (82,925 registered autos in Q2 and Q3 2025)
• BMW iX1and iX2 (46,017 registered autos)
• BYD Seal Design EV and Sealion 7 Comfort EV (7,216 registered autos)
• Cupra Tavascan (5,667 registered autos)
• Ford Capri (2,284 registered autos)
• Hyundai Ioniq 5 and Ioniq 6 (20,161 registered autos)

• Lexus RZ (2,209 registered autos)
• Mercedes-Benz CLA Electric and EQA (2,000 registered autos)
• MG IM6 Long Range (27 registered autos)
• Peugeot E-3008 and E-5008 (19,609 registered autos)
• Polestar 2 (44,347 registered autos)
• Skoda Enyaq (22,534 registered autos)
• Tesla Model 3 Premium, Model Y and Model Y Premium (211,125 registered autos)

Alex Lee, motoring knowledgeable at Dick Lovett, mentioned: “For anyone looking at a new EV, this tax change offers a welcome savings opportunity. For those looking at electric cars between £40,000 and £50,000, drivers can now expect to save £2,125 over five years.

“This additionally implies that drivers could have more alternative with regards to mid-range EVs, and might add larger spec trims to those fashions with out worrying about further taxes being utilized. For instance, the MINI Countryman SE ALL4 fashions would have already got been exempt from this luxurious car tax, however patrons can now benefit by including high spec configurations similar to their Level 1 Pack (from £42,705) with out triggering the extra tax on their car.

“However, with the changes in this tax, it’s important for drivers to look into the specific car they are wanting to get to avoid any confusion, as not all models will now be exempt. While BMW’s iX1 and iX2 ranges now fall under the luxury car tax threshold, the iX M60 models will not be exempt from the £425 per year charge.

“The tax is predicated on the checklist price of your vehicle at buy, so be sure you are not choosing trims that push you over the brink with out understanding. It’s all the time best to move into a dealership to chat by your choices for those who’re not sure on pricing.”