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Government hints at luxury car tax U-turn

Auto Express

|

May 28, 2025

THE controversial luxury car tax on EVs could be about to be axed.

- Chris Rosamond Chris.Rosamond@autoexpress.co.uk

Government hints at luxury car tax U-turn

A letter from Labour transport minister Lilian Greenwood to a local MP, seen by Auto Express, says the Government will consider raising the threshold of the expensive VED surcharge “for zero emissions vehicles only, at a future fiscal event”. The aim would be to “make it easier to buy electric cars”.

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