Electric cars.

[old dog new tricks]

From further down on the same page.
https://www.gov.uk/guidance/vehicle-tax-for-electric-and-low-emissions-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."

Yours will be £195. If you renew early (or cancel and renew in March) you'll get another year at £0.

Good spot other sites have been spreading misinformation or fake news as the Trump would say stating that the expensive car tax will retrospectively applied to all cars with purchase price over £40k from April 2017, this may have affected me.

Regards beating the system I am sure that from 1st April 2025 the rates change and you will be classed as not taxed, the DVLA stated they send a reminder to me, my car is not due for VED renewal until May.
When I check the DVLA tax checker still only shows current rates, will not show new rates for my car

 

[old dog new tricks]

Don’t buy an expensive car!
Buy one for 20k instead of 40 and spend the money you saved on this

https://www.ebay.co.uk/itm/32640433...TTlM-5vTVy&var=&widget_ver=artemis&media=COPY

I can assure you I certainly never paid £40k I bought it 4 years old at less than £17k and took it on a PCP so I can hand it back if the battery tanks

 

[Nicks90]

This extra tax is just ridiculous
Anything over 40k classed as a luxury car?
I'd hardly say a well specced xtrail, or golf, or ford kuga, or (insert pretty much most cars outside of econo-boxes) are 'luxury'
It's been set way too low to be realistic at anything other than just another generalised tax grab by labour.

 

[Northern_Brewer]

This extra tax is just ridiculous...

It's been set way too low to be realistic at anything other than just another generalised tax grab by labour.

It was introduced by George Osborne as part of his car tax reforms in July 2015, it's just that none of the (mostly Tory) Chancellors since then have increased the £40k limit...
https://www.gov.uk/government/publi...15/summer-budget-2015#budget-policy-decisions

 

[Nicks90]

In which case I stand corrected - but still maintain it's just a cynical tax grab.
We could do with a DOGE in this country to chop out a big chunk of what we have to pay. However that's probably worth a separate thread hehehe

 

[hoppyscotty]

Well it was the conservatives that started us down this net zero nonsense and they realised that as more people transitioned to net zero products like EVs, and away from ICE cars, then a huge black hole would start to emerge in our tax take due to the decline in sale of petrol and diesel, so they are inevitably thinking of ever more innovative and cynical ways to grab tax. By coercing people into new more expensive cars then this new 'luxury' car tax might go someway to plugging the tax income black hole they're creating.

Of course luxury items are always an easy target for politicians. But today's luxury items are tomorrows essentials...would we all consider a mobile phone to be a luxury item anymore? And about 30 years ago 40K did buy you a luxury car, but these days it barely buy's you a modest family hatchback with a few optional extras. It was the last tory government that did the very un-tory like thing and increase taxation, and they were punished for it in the last general election, but this rabble are doing exactly what everyone expected them to do and load up taxes even more. They could revoke or reduce any tax they like, but taxes operate on a ratchet mechanism and rarely are totally removed or significantly reduced. In the last budget we got a measly penny off a pint's worth of tax relief..yeah, great help that is on the basis it wasn't really passed to the consumer and totally swallowed up by other tax increases like NI and the increase in minimum wage. So expect more from this lot. It is not in their nature to reduce or remove taxes under normal circumstances.

The more they push EV's the more of a tax problem they are going to create so the more other things are going to be taxed.

 

[stripeyjoe]

I can assure you I certainly never paid £40k I bought it 4 years old at less than £17k and took it on a PCP so I can hand it back if the battery tanks

Well you are ok as the £40k thing is only for cars registered after this April...

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.

 

[old dog new tricks]

Well you are ok as the £40k thing is only for cars registered after this April...

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.

yes thanks have now seen the clarification, it seems many media and websites were spreading fake news.

Regards the £40k expensive vehicle supplement if it had kept in line with inflation using the bank of England calculator the correct level for 2024 should have been £54,220.75 - this makes more sense.

Yet another Tory policy this lot have not rolled back or amended in fact on this one they just widened it to cover every vehicle regardless of emissions.

The stealth tax (or Fiscal Drag) measures have been in force in Scotland for years the 42% (yes 42% not 40% as in England & Wales) was static for years and does not rise with inflation e.g, England & Wales the cut off point to move into the higher bracket is £50,271 (£12,570 + £37,701) where as in Scotland its £43,663 (£12,570 + £31,093) - this is where stealth taxing starts to hurt the thresholds do not track inflation like wages do, so you get get dragged into paying more tax even if not keeping up with inflation.

The Tories sneaked this in back on 2022 for England and Wales, was meant to stop in 2026, but was then extended until 2028, Labour refuse to role it back to 2026 as the original Tory plan was but instead only commit to not extending beyond 2028.

Look at the effect it has has on thresholds for the Scottish example, be interesting to look back at 2028 and see how much this has cheated every tax payer, a back handed way to raise taxes with saying it, typical of governments in this country for decades now.

I am really trying not to be a cynic, but it really is looking like a push to get us onto full electric, cars, heating everything, just as they ramp up the energy costs and hence tax returns.

I remember a crazy article years ago saying they would force everyone onto heat pumps, then after ripping out your gas boiler, you could buy a permit and pay higher taxes for a smaller gas boiler to aid the heat pump but be charged a penalty for using gas, with gas and electricity on a sliding scale ramping up the more you dare to use. Solar, wind turbines and all other forms of renewable energy would be metered and every kilowatt generated to be taxed and re taxed if sold back to the grid. EVs to be heavily taxed, charging at home or public be heavily taxed on a sliding scale ramping up the more you dare to use, then every mile you dare to drive be taxed, on a sliding scale doubling every 5k (or whatever value the government of the day sets) every parking space at home, at work, at shops be taxed by the hour for daring to own a private vehicle, daring to have a garage or off road parking be taxed per vehicle with penalties for more than 1 vehicle per household. Trackers and automated speed restriction be mandated to every vehicle.

I used to think this was work of fiction or a crazy persons rants, but as time goes on it looks more like the basis for government policy!

 

[stripeyjoe]

Personally, I don't think we pay enough direct tax on earned and unearned income. I would like to see them both taxed at the same rates, with a sliding scale.
I would raise the 20% start level up to £20k, 40% anything over £60K, 50% over £120k, 60% over £500k and 75% over £1m - both for earned income from doing actual work and from share dividends and other income derived from asset ownership.

We also need taxation to change our dirty habits - to help us move from energy derived from fossil fuel, from processes that produce pollutants and from using products where the materials cannot easily be recycled at the end of the product's life.

I would also include nuclear energy in the 'dirty' pile as there is no known way of economically dealing with the waste other than burying it and hoping no-one digs it up by accident in 1000 years (or 100,000 years for the most radioactive *****). 2023 estimate for the cost of clearing up the current level of waste was £236 billion!

https://www.bbc.co.uk/news/articles/cly7gk3xk3zo
https://www.theguardian.com/busines...oney-europe-toxic-nuclear-site-cumbria-safety