To ask the Chancellor of the Exchequer, whether her Department plans to increase the minimum threshold at which the Expensive Car Supplement is levied on vehicle excise duty.
Answered on
18 February 2025
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.
Answered by
Treasury