# ‘Envy’ tax to clobber one million drivers who buy an average car this year

- URL: https://talkfuse.com/story/envy-tax-to-clobber-one-million-drivers-who-buy-an-average-car-this-year/
- Published: 2026-07-20T00:13:56+00:00
- Updated: 2026-07-31T09:17:35+00:00
- Original publisher: Daily Mail (publisher lean: Right)
- Original article: https://www.dailymail.com/news/article-15989511/Envy-tax-clobber-one-million-drivers-buy-average-car-year.html?ns_mchannel=rss&ns_campaign=1490&ito=1490
- Topics: World

## Key points

- Rising car prices are bringing more buyers into the £425 annual levy.
- The £40,000 threshold for most cars has been frozen since 2017.
- Qualifying owners pay £2,125 over five years.

## Summary

Nearly one million motorists buying new cars this year could face the “expensive vehicle supplement”, an annual £425 charge for vehicles with a list price above £40,000. Critics argue that frozen thresholds are drawing ordinary family cars into a tax intended for luxury vehicles, increasing costs for buyers as new-car prices rise.

The levy applies for five years after a car’s second year of registration, adding £2,125 in total, and can also affect second-hand buyers during that period. Jato estimates registrations of qualifying new cars could reach 973,000 in 2026; the industry body SMMT says 70 per cent of new cars now cost £40,000 or more. Electric cars received a £50,000 threshold in April, while the petrol, diesel and hybrid threshold has remained at £40,000 since 2017.

---
Summarised by TalkFuse (https://talkfuse.com/). Quote the original publisher for the reporting and link this page for the summary and discussion.