The UK motor industry has called for the new Labour Government to exempt electric cars from the so-called ‘luxury-car’ tax before they become liable next year. The news comes as Auto Express reveals that almost a third of new cars registered in 2023 were liable for the Vehicle Excise Duty (VED) surcharge.
Paid annually over and above the standard £190 VED rate in years two to five of ownership, the luxury-car tax was increased from £390 per year in 2023 to £410 in 2024. We submitted a Freedom of Information request to the DVLA and were told that 601,978 (roughly 31 per cent) of all cars first registered in 2023 will be liable for the additional VED supplement this year, showcasing not only the far-reaching nature of the surcharge, but also the inflated prices of new cars.
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