Lower Vehicle Excise Duty and raise the £40,000 ‘luxury car tax’ threshold

Background

Raise the £40,000 expensive car supplement threshold to at least £50,000 to reflect inflation, and conduct a full review of VED rates to ensure they are fair and do not penalise ordinary motorists buying mainstream family vehicles.

Additional details

The £40,000 threshold has not changed since 2017. Adjusted for inflation it should exceed £54,000. Ordinary family cars now routinely breach this limit, triggering a £410 annual surcharge for five years. This is not a luxury tax — it is an outdated stealth tax hitting everyday drivers who already face heavy burdens through fuel duty, insurance premium tax, and standard VED.