EV tax change to save drivers £425 on mid-range models
The UK has increased the electric vehicle price threshold for the luxury car tax from £40,000 to £50,000, saving nearly half a million drivers £425 annually. The change affects 116 EV models across 23 ranges, widening choice in the mid-market EV segment.
The UK government has raised the electric vehicle (EV) price threshold for the luxury car tax from £40,000 to £50,000. This change means nearly half a million UK drivers will avoid paying the £425 annual tax. According to Dick Lovett, 475,836 vehicles registered since April 2025 now fall below the revised threshold. The total saving across the UK is estimated at over £200 million. The change affects 116 EV models across 23 ranges, including the BYD Sealion 7 Comfort, BMW iX1, and Tesla Model Y. Drivers can now save £2,125 over five years, but should check the specific trim and pricing to ensure eligibility.
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