6 great electric cars that avoid new £2,000 tax bill
March 28, 2025 by Jamie Edkins
Car changing is a big deal
Electric cars will no longer be exempt from car tax from 1 April 2025, meaning models over £40,000 will attract the Expensive Car Supplement for the first time. Here are six great EVs which dodge this new tax.
If you’re thinking of buying a new EV, there’s a new cost involved which you’ll need to consider. Electric cars used to be exempt from any form of road tax, however from 1 April 2025 this will no longer be the case.
From this date you’ll pay £10 for the first year, followed by the standard £195 per year thereafter. This may come as a blow if you were looking to buy an electric car to save money, and there’s another added bill to think about.
That’s the so-called “Expensive Car Supplement” which sees any vehicle costing more than £40,000 attracting a whopping £425 yearly tax bill from years two to six on top of the standard fee. That amounts to more than £2,000.
This will affect a lot of electric cars, especially larger SUVs and family cars, because EVs tend to attract a higher starting price than petrol or diesel cars.
You won’t be able to avoid that £195 yearly bill, however there are some great electric cars for less than £40,000 which will save you paying that additional supplement. We’ve picked six examples, with everything from big, spacious family haulers to zippy hot hatches.
The six best EVs for avoiding the Expensive Car Supplement are:
- Hyundai Ioniq 5
- Volvo EX30
- Citroen e-C3
- Cupra Born
- Skoda Enyaq
- Alpine A290
1. Hyundai Ioniq 5
The Hyundai Ioniq 5 is one of the best electric SUVs out there. It’s spacious inside, packed with tech and it’s lovely to drive. For less than £40,000 you’ll have to go for the most basic model, but you still get twin 12.3-inch screens, dual-zone climate control and a heat pump to improve the range on cold days. It’s just a shame that the boot isn’t the biggest in this class.
2. Volvo EX30
For a bit of Scandinavian style, why not check out the Volvo EX30? This former Carwow Car Of The Year looks fantastic both inside and out, and it’s comfortable to drive. For our £40,000 budget you can get a mid-spec Plus model with the larger of two battery options, giving the EX30 295 miles of range. A Kia EV3 is more practical, but the EX30 is still a desirable small EV.
3. Citroen e-C3
If value for money is a top priority, the Citroen e-C3 is hard to beat. A top-of-the-range Max version can be yours for less than £25,000, and it gets luxuries like heated seats, a heated steering wheel and a reversing camera. The sub-200 mile range isn’t ideal, but at least the e-C3 is super comfortable to drive and great around town.
4. Cupra Born
The Cupra Born is a family-friendly electric hatchback with a sporty edge. It’s more stylish than the Volkswagen ID3, the car it shares its parts with, and you get loads of interior space. For £40,000 we’d go for the mid-range V2 version as it comes with all the kit you could need, although it’s a shame that you can’t get the larger battery within budget. This would give you 342 miles of range, but the 264 miles you get in the V2 should be plenty for most.
5. Skoda Enyaq
In terms of space for the money, it’s hard to beat the Skoda Enyaq. You get a massive 585-litre boot, loads of rear seat space and plenty of interior storage. Our £40,000 budget limits you to the basic version with 270 miles of range, but you do still get things like heated seats, a heated steering wheel and keyless entry as standard.
6. Alpine A290
Finally, how about a thrilling hot hatch? The Alpine A290 is based on the super-cool Renault 5 E-Tech, only it’s got a more powerful motor and plenty of chassis and suspension upgrades to make it fun to drive on a twisty road. For £40,000 you can get the top-spec GT Premium model with a heated steering wheel and a handful of styling upgrades. The 224-mile range isn’t great, but it’s the price you pay for the added power.
Car change? Carwow!
Looking for a new set of wheels? With Carwow you can sell your car quickly and for a fair price – as well as find great offers on your next one. Whether you’re looking to buy a car brand new, are after something used or you want to explore car leasing options, Carwow is your one stop shop for new car deals.
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