The 23 cars exempt from £2,200 car tax change this | Tech News
Motorists have been hit with staggering car tax payments in April as new Vehicle Excise Duty (VED) adjustments got here into impact from the beginning of the month. One of these updates was tweaks to the (*23*) Car Supplement (ECS) costs, with costs up and thresholds modified.
The ECS charge is a luxurious car tax charge, an extra charge utilized to more costly cars for a period of 5 years. Before this month, the charge was £425 per 12 months, however this elevated to £440 every year from April 1, which means highway customers pays £2,200 over 5 years.
However, ECS thresholds had been additionally up to date in April, which means electric cars with a listing price of over £50,000 are actually charged at £40,000 as an alternative of £40,000. The adjustments imply dozens of electric cars that used to pay the charge will now dodge the charge as their valuations fall between £40,000 and £50,000.
The charges are retrospective, making use of to automobiles registered on or after 1 April 2025, which means present homeowners in addition to new consumers may make financial savings. Experts at Carwow have labored out which fashions may benefit from the new threshold adjustments, and it is a actual combine.
Electric cars from family manufacturers such because the Ford Capri, Peugeot E-3008 and Skoda Enyaq Coupe are set to no longer pay ECS charges. Drivers in search of one thing more sporty with out extra prices may be in luck, with ECS charges more likely to be eliminated from fashions such because the Polestar 2 and Tesla Model 3 Premium.
But, consultants have careworn that ECS charges are calculated primarily based on the listing price of a model, which is the valuation after any added extras have been utilized. Although the bottom fashions could also be under the £50,000 threshold, including non-compulsory extras may push the price over £50,000.
Siobhan Doyle, shopper author at Carwow, stated: “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.”
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