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Car tax changes will mean price increases for these electric vehicles – Express


Car tax changes mean the plug-in grant has been extended up until 2022/23 although a price cap has been introduced for the first time. The changes will mean the grant is only offered for vehicles priced under £50,000 with some premium range models now exempt from reductions. 

The amount of funding available under the grant has also been reduced from £4,500 to just £3,000 as the number of electric cars on the road continues to increase. 

Analysis from Octopus Electric Vehicles has revealed four of the most popular electric models on the market will lose access to the plug-in grant. 

Motorists looking to buy an Audi e-tron 50 S Line are likely to pay more than £66,000 for a vehicle and will be exempt from any additional support. 

Those looking to purchase a Jaguar I-Pace will also see the grant removed as costs are likely to be around £65,000. 

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Tesla’s premium Model S and Model X designs will also become exempt from grant payments with their models valued at £82,000 and £93,400. 

However, the group’s Model 3 will still be able to claim money through the plug-in grant as the vehicle is listed at just over £43,000. 

Plug-in grant changes have already come into effect with the updates introduced for all orders placed after March 11.

Speaking to Express.co.uk, Fiona Howarth, CEO of Octopus Electric Vehicles said: “The government continues to reduce the up-front cost of electric vehicles by £3,000 with the extension of the Plug In Car Grant until 2023 – encouraging drivers and families to get behind the wheel of clean, green cars.

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“While the grant has been removed for vehicles worth £50,000 or more, affecting the likes of the Audi e-tron and the Jaguar I-PACE, these drivers are now exempt from the luxury car tax, saving £320 per year.”

The government has said they will continue to keep the grant under review with the Transport Secretary previously hinting it could be scrapped. 

The plug-in grant was introduced in 2011 as a way to support the uptake of ultra low vehicles across the UK. 

Initially a massive £5,000 was offered to road users but the value has been steadily decreased as electric cars become more mainstream. 

The budget became available solely for those purchasing a zero-emission fully-electric car from 2018. 

However, electric car vehicles are being offered extensive tax breaks as part of the new 2020 budget which will see owners make massive savings. 

Extra charges for expensive electric vehicles above £40,000 will be scrapped under the new car tax rules. 

This will save owners of expensive electric car owners a total of £320 per year while charges for non-electric vehicles are expected to rise. 

Electric car benefit-in-kind rates will also be completely scrapped from April 6 which will make fully-electric vehicles more accessible. 

Under the proposals, electric vehicles could be purchased on finance deals through company car ownership schemes for dramatically low prices. 

Ms Howarth added: “These savings are on top of those electric drivers are already enjoying, with charging costs from as low as 1p per mile when coupled with Octopus Energy’s Go tariff (over 90% than most traditional vehicles). 

“Not to mention lower maintenance, road tax, tolls and parking costs.

“The combination of great financial incentives with emissions-free driving and  impressive technology makes switching to electric driving a no brainer.”



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