Expensive car tax

[Hodders]

Just wanted to check I understand this right.

Specifically EVs.

If the car had a list price (inc options) of > £50k and was registered on or after 1/4/2025 then you end up having to pay the extra £440 for years 2 to 6 (i.e. £2,200 extra in tax) ?

Has anyone noticed if registration date has an influence on 2nd hand price. I.e. car from 31/3/2025 costs £x, car from 1/4/2025 costs £x-2k for same condition and mileage etc.

Is there any chance the £50k could be lifted retrospectively in future budgets meaning that some cars currently caught could be freed in the future?

 

[throwaway4372]

If the car had a list price (inc options) of > £50k and was registered on or after 1/4/2025 then you end up having to pay the extra £440 for years 2 to 6 (i.e. £2,200 extra in tax) ?

Correct.

Has anyone noticed if registration date has an influence on 2nd hand price. I.e. car from 31/3/2025 costs £x, car from 1/4/2025 costs £x-2k for same condition and mileage etc.

That's a very specific thing, to find the same cars with those dates where the manufacturer didn't adjust the price to get below the tax threshold. I think probably what would happen is the earlier car would sell first, but without noticeable difference in price. Plates change in March too, so maybe you'd want to look at Feb.

Is there any chance the £50k could be lifted retrospectively in future budgets meaning that some cars currently caught could be freed in the future?

That won't happen while Labour is in Government because they'd never say "we're going to give these wealthy people a tax break". So April 2030 would be the earliest possible change. Ultimately the country is still broke regardless of who's in charge so I don't expect anyone will make this change.

 

[ChocAndGray]

Yes any new EV registered from the 1st of April 2026 with a list price of £50,000 plus pays the additional cost on the standard rfl. Anything new EV registered with a list price below that threshold is exempt from paying the “luxury car tax”

Last year the threshold was £40,000 plus on EV registered from 1st of April 2025.

There’s no way to get around it, even if you bought brand new and with discount paid £48,000 you’d still be paying the additional fee until the car is 6 years old. The same principle applies buying used, you could pay £5 for the car, but if the list price was above 50,000 you would be paying the additional fee until the car is 6 years old.

There is an exemption though, if you bought a an EV that had a list price of £45,000 registered in May 2025 you will no longer pay the additional fee!

The plate whether a 75 or 26 has no impact on valuations, and resale, and neither would a registration date difference of days in your example. Many customers refuse to collect cars in February preferring to have the new registration, whether it’s because they want people to know they have a new car, or feel their car would be worth more. We often have to offer financial incentives to get them to take the cars in February!!

Also in your example that same car registered in march 2025 versus April 2025 would not command a premium when we price a car. We use cap, autotrader retail rating and our own experience when pricing cars. The additional fee on tax that customers pay does not even factor into pricing of secondhand cars, neither would a registration date difference of days, weeks…

Lastly with regards to the threshold being changed, anything is possible. They’ve already raised it from £40,000 for EV.

I wouldn’t buy in the hope they do though, if you’re not willing to pay the fee look for an EV with a list price under 50k

 

[jpaul]

[can check on dvla site for used vehicles luxuriness - why doesn't AT still not tell you

yes , indeed bev's excepted now that I input a phev reg into the govt tax checker 330e

Untaxed Vehicle LO71WVA is not Taxed​

Tax due: 18 December 2023​

Incorrect tax status?​

MOT​

No details held by DVLA No details held by DVLA for vehicle LO71WVA​

Incorrect MOT status?​

​

! Warning If you've just bought this vehicle the tax or SORN doesn't come with it. You'll need to tax it before driving it.​

Vehicle Details​

Vehicle makeBMW​

Date of first registrationFebruary 2022​

Year of manufacture2022​

Cylinder capacity1998 cc​

CO₂ emissions40 g/km​

Fuel typeHYBRID ELECTRIC​

Euro statusEURO 6 AP​

Real Driving Emissions (RDE)2​

Export markerNo​

...​

Date of last V5C (logbook) issued9 February 2022​

Additional Rate applicable until31 January 2028​

]