Motor Vehicles: Excise Duties

Treasury written question – answered at on 13 January 2025.

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Photo of Christopher Bloore Christopher Bloore Labour, Redditch

To ask the Chancellor of the Exchequer, whether she plans to review the list price at which motorists are required to pay additional car tax.

Photo of James Murray James Murray The Exchequer Secretary

The Expensive Car Supplement is an additional VED charge for new cars with a list price of £40,000 or more, which is payable in year 2 – 6 of a car’s lifecycle.

As set out at Autumn Budget 2024, the government recognises the disproportionate impact of the current VED Expensive Car Supplement threshold for those purchasing zero emission cars and will consider raising the threshold for zero emission cars only at a future fiscal event, to make it easier to buy electric cars.

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