From 1 April 2025, changes to Vehicle Excise Duty (VED) mean electric car buyers will face new tax charges – especially if the car costs over £40,000. In response, Vauxhall has reduced the price of every electric car in its range to below that threshold, saving customers money.
Previously, fully electric cars were exempt from road tax. But now, all new EVs will pay £10 in the first year, followed by the standard annual rate of £195 from year two onwards. On top of this, any vehicle with a list price over £40,000 will face an extra charge called the ‘Expensive Car Supplement’. This adds £425 per year for five years, starting in year two – totalling £2,125 extra over six years.
Vauxhall’s move means their customers won’t have to pay this additional charge. By keeping all electric models under the £40,000 mark, buyers will save £2,125 in VED compared to similarly priced cars that go over the limit.
Eurig Druce, Managing Director of Vauxhall, said:
“With electric cars no longer exempt from Vehicle Excise Duty, Vauxhall is making electric mobility accessible and affordable for British drivers. The Vauxhall electric car range* now sits below the £40,000 Expensive Car Supplement threshold, saving customers some £2,125 in road tax over the first few years of ownership.”
He also noted that the £40,000 threshold hasn’t changed since 2017, even though inflation has driven up car prices. If it had kept pace, the threshold would be closer to £52,000 today. With the average EV now costing around £48,000, many drivers are being hit by the new charge – even when choosing relatively affordable electric models.
Vauxhall believes this pricing adjustment will support more UK drivers in making the switch to electric, and is urging the government to rethink how EVs are taxed to keep them within reach for the majority of motorists.
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