Rachel Reeves faces criticism over a new £2,125 luxury car tax on EVs over £40,000, starting April 2025. Critics argue it makes EVs less affordable, with 70% of new models affected, compared to 18% of petrol and diesel cars.
The tax adds £425 annually for five years, alongside standard Vehicle Excise Duty (VED). Experts say the unchanged £40,000 threshold penalizes mid-range EVs and discourages adoption, conflicting with net-zero goals and 2030 EV bans. Calls are growing for incentives and updated thresholds to support greener vehicle adoption.
https://www.telegraph.co.uk/money/tax/rachel-reeves-pressure-scrap-2k-luxury-tax-evs/