23 Popular Cars Exempt from New Car Tax Supplement in April
New Expensive Car Supplement car tax fees were introduced this April, but owners of 23 specific cars may avoid these additional charges. The Labour Party government has increased the price threshold for the Expensive Car Supplement from £40,000 to £50,000, effective from April 1. This change means that electric car owners can escape paying an extra £425 per year for five years on top of the standard tax rate.
Understanding the Tax Threshold Change
Siobhan Doyle, a consumer writer at Carwow, explained, "It's important to note that the expensive car supplement is implemented based on the purchase price of the car, meaning that not all versions of a model will necessarily be eligible. For example, if you go for a higher-specification trim, bigger battery, or simply pile on the optional extras, you could be charged extra if the car's value exceeds £50,000."
Experts at DriveElectric commented, "This update better reflects how people actually use electric cars today. Right now, a huge number of family-sized EVs sit in the £40,000–£50,000 bracket. Under the old rules, they were classed as 'luxury', even though they're often the practical, everyday choice for families. That's where this change makes a real difference."
Full List of Exempt Electric Cars
Drivers are advised to check the exact version they are ordering, as selecting a higher-spec model or adding optional extras could quickly push the price over the key threshold. The following electric cars, priced between £40,000 and £50,000, are exempt from the Expensive Car Supplement fee:
- Audi Q4 e-tron
- Audi Q4 Sportback e-tron
- BMW iX1
- BMW iX2
- BYD Seal
- BYD Sealion 7
- Cupra Tavascan
- Ford Capri
- Hyundai Ioniq 5
- Hyundai Ioniq 6
- Kia EV4 Fastback
- Lexus RZ
- Mercedes-Benz CLA Electric
- Mercedes-Benz EQA
- Mercedes-Benz GLB Electric
- MG IM6
- Peugeot E-3008
- Peugeot E-5008
- Polestar 2
- Skoda Enyaq Coupe
- Tesla Model 3 Premium
- Tesla Model Y
- Tesla Model Y Premium
This exemption provides significant savings for owners, highlighting the government's adjustment to better align with current electric vehicle usage and market trends.
