Cars no longer hit by 'luxury vehicle tax' include Audi, BMW, Skoda as new threshold takes effect

Cars no longer hit by 'luxury vehicle tax' include Audi, BMW, Skoda as new threshold takes effectAt least 475,836 drivers will benefit from the UK EV tax exemption 2026, saving £425 a year on the expensive car supplement, according to new researchCommentsMoneySteven Smith Content Editor15:05, 20 Apr 2026Updated 15:09, 20 Apr 2026View 3 ImagesMG IM6(Image: MG IM6/Newspress)A shake-up in car tax regulations coming into effect in April 2026 means that owners of certain higher-priced vehicles will no longer be stung with an additional £425 annual charge. Fresh research from motor group Dick Lovett has shed light on just how many motorists stand to benefit from the updated tax rules.‌Electric vehicles were previously exempt from the so-called 'luxury vehicle tax' — officially known as the Expensive Car Supplement — but it had been announced that EVs costing £40,000 or more and registered after April 1, 2025, would be liable for the extra £425 per year. However, the threshold has now been raised to £50,000 from April 1, 2026, meaning drivers of popular models priced between £40,000 and £50,000 will dodge this additional cost.‌By examining UK vehicle registrations since April 1, 2025, Dick Lovett calculated that at least 475,836 drivers will benefit from the tax change, each saving £425 annually. Given that the charge applies for a five-year period beginning in the second year of a car's "life", those now exempt stand to save a total of £2,125 over five years.‌After scrutinising 116 EV models across 23 ranges falling within the £40,000 to £50,000 bracket, Dick Lovett found that 475,836 registered vehicles are now free from the luxury car tax. It is worth noting that while some models within a range qualify for the exemption, others still exceed the threshold, so it is crucial for drivers to check their specific model rather than assuming an entire range is exempt.View 3 ImagesSkoda Enyaq(Image: Skoda/Newspress)Take the BYD Sealion 7 Comfo...