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The Vehicle Excise Duty (VED), commonly known as road tax, is increasing from April 1st 2025 which will impact owners of electric (EV) and hybrid vehicles valued over £40,000. These changes are part of the government's efforts to create a more equitable motoring tax system.
There's never been a better time to buy! Act now, pay less and avoid the expensive car supplement increases!
The Expensive Car Supplement, often referred to as the 'luxury car tax,' is an additional VED charge applied to vehicles with a list price exceeding £40,000. This supplement is payable annually from the second to the sixth year of the vehicle's life, resulting in five consecutive payments.
Inclusion of EVs and Hybrids: Previously, zero-emission vehicles, including EVs, were exempt from VED. However, starting April 1, 2025, all new zero-emission cars registered on or after this date will be subject to VED.
If you're planning to purchase a new EV or hybrid vehicle, it's important to consider these upcoming tax changes:
Vehicle Selection: To avoid the Expensive Car Supplement, you might consider choosing models with a list price under £40,000 or opting for vehicles registered before April 1, 2025.
At Birchwood, we are committed to keeping our customers informed about changes that may affect their vehicle ownership experience. If you have any questions or need assistance in selecting a vehicle that aligns with your preferences and budget, please don't hesitate to contact our team.
