John Bennett
Senior Member
You sure you’re paying the >£40k tax?
It’s like another £410 on top of the normal tax.
It’s like another £410 on top of the normal tax.
Looking at buying a new car
- Thread starter kingtreelo
- Start date
kingtreelo
Active member
well the car has a list value of around 50k, so yes
Only if New EV Registered from April 2025 as I read it at bottom
So no more Free tax even on cars currently in 0 tax band as that's gone
From 1 April 2025, registered keepers of electric, zero or low emission cars, vans and motorcycles will need to pay vehicle tax in the same way as registered keepers of petrol and diesel vehicles. This change will apply to both new and existing vehicles.
This new measure removes band A under the existing VED system which is currently £0. Vehicles in this band will be required to move to the first band where a rate becomes payable.
So no more Free tax even on cars currently in 0 tax band as that's gone
From 1 April 2025, registered keepers of electric, zero or low emission cars, vans and motorcycles will need to pay vehicle tax in the same way as registered keepers of petrol and diesel vehicles. This change will apply to both new and existing vehicles.
This new measure removes band A under the existing VED system which is currently £0. Vehicles in this band will be required to move to the first band where a rate becomes payable.
How the changes will affect your vehicle
Electric, zero or low emission cars registered on or after 1 April 2025
You will need to pay the lowest first year rate of vehicle tax set at £10 from 1 April 2025. From the second tax payment onwards, you will pay the standard rate. This will be £195.Electric, zero or low emission cars registered between 1 April 2017 and 31 March 2025
You will pay the standard rate. This will be £195.Electric, zero or low emission cars registered between 1 March 2001 and 31 March 2017
These vehicles will move to the first band that has a VED value. This will be £20.Hybrid and alternatively fuelled vehicles (AFVs)
The £10 annual discount for hybrid and AFVs will be removed, and the rate you will pay will depend on when the vehicle was first registered. If the vehicle was:- registered before 1 April 2017 - this rate will depend on the vehicle’s CO2 emissions (check the current rates for these vehicles)
- registered on or after 1 April 2017 - you will pay the standard rate (this will be £195)
Electric vans
Most electric vans will move to the standard annual rate for light goods vehicles. Check the current rates for these vehicles.Electric motorcycles
Electric motorcycles and tricycles will move to the annual rate for the smallest engine size. Check the current rates for these vehicles.Additional rate (expensive car supplement)
New electric and zero emission vehicles registered on or after 1 April 2025 with the list price exceeding £40,000 will attract the standard rate, plus the expensive car supplement for the first 5 years from the start of the second licence.
kingtreelo
Active member
No
"Introduced by the Government in April 2017, the expensive car supplement is an additional fee levied on cars that cost more than £40,000 new. It’s part of the VED, or ‘road tax’, that car owners pay annually. Currently, electric cars are exempt from the £190 flat rate (£195 after 1 April 2025) that most newer cars pay each year. However, this is set to change from 1 April when hybrid and electric car owners will have to pay the same rate as drivers of petrol and diesel cars."
ah ok, just read Bods post above, so yeah, it seems it will just be the normal tax for me..,.yay
I had to pay it on my last BMWi3s, which was 2018 as they added hybrids to the list and although it only used electric to power the wheels it had a range extender 500c petrol generator. And just like income tax rates there's no sign of them raising the threshold! 40k might have bought a decent new car a few years ago, don't get much for that now. Seems like soon there will be no escape
kingtreelo
Active member
you can get some very very good cars for 40k....lol
kingtreelo
Active member
then look for one that is 2 years old with little mileage, i have found that cars costing 50k are worth about 20k less after 2-3 years and some have very little wear and tear on them
the initial drop in value is only for the first few years, then it steadies out a bit
Yeah, I was only talking about new value as that's what the tax is based on. If you bought a secondhand post march 2025 car next year you'll be liable for the tax if the RRP was over the 40k threshold
kingtreelo
Active member
anyone buying a brand new car needs medical assistance, absolutely no point at all
I'm getting help! My current EV is my first ever lease but to be honest I like having a new car rather than used, but I definitely understand the financial appeal.
kingtreelo
Active member
John Bennett
Senior Member
That’s noble. I’d spend it on wine.
I had someone run into the front of my first one. Was a write off