New DVLA Warning: Tax Threshold for Cars Has Changed

The agency warned drivers.

Motorists must avoid a mistake after a new DVLA warning about tax rules.

The DVLA warned buyers of electric cars to check the price carefully. Electric cars priced £50,000 or under are not subject to the expensive car supplement if registered from April 1, 2025.

Vehicles over £50,000 still have to pay the surcharge.

From April 2025, electric cars will no longer be fully exempt from Vehicle Excise Duty.

Here are the costs:

For cars over £50,000:

This extra tax applies from the second to the sixth year of ownership.

Motorists can avoid a tax problem.

A motorist who buys an EV for just under £50,000 will pay around £200 a year. But if they pay a bit more, the annual bill will be £640 for five years.

This means an extra £2,200 over five years.

The official list price decides the tax, not the price the buyer pays.

Electric vehicle prices are going down, making it easier to stay under the £50,000 limit.

The Society of Motor Manufacturers and Traders says EV sales are still rising.

The second-hand market has seen big price drops, with pre-owned EVs losing value faster than petrol cars.

More competition, especially from Chinese companies, is driving down prices.

Companies like BYD and MG Motor are selling cheaper electric cars in the UK, making prices go down.

Their arrival has increased competition and made other companies cut prices and offer cheaper electric cars.

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