Increase the Threshold for Additional Supplementary Car Tax

Background

Raise the Additional Supplementary Car Tax threshold from £40,000 to £55,000. This will reflect rising new car prices, particularly for hybrids and EVs, and encourage the adoption of cleaner vehicles.

Additional details

Since 2017, new car prices have increased dramatically. The £40,000 threshold now unfairly penalizes families buying essential vehicles, especially hybrids and EVs which the government promotes. Raising the threshold to £55,000 will incentivize cleaner vehicle adoption, reflect market realities, and create a fairer tax system, supporting the transition to greener transportation.