Top five electric cars that dodge April’s luxury tax hike

It’s a great time to be interested in electric cars. The threshold for the “Expensive Car Supplement” – often called the luxury car tax – will rise from £40,000 to £50,000 from April.

Currently, cars priced above £40,000 pay an extra £425 per year for five years on top of the standard rate. From 1 April 2026, zero-emission vehicles costing less than £50,000 will be exempt from this supplement.

Many family-sized electric cars fall in the £40,000-50,000 range, meaning you could save thousands in extra road tax over five years. However, be aware that exemptions apply only to certain trims and configurations, and not all variants of a model will qualify. And remember: it’s the official list price (RRP) – not a negotiated or discounted price – that counts, so double-check before you buy.

So, with more EVs about to be exempt from this tax change, which models in this price range are genuinely worth considering? Here are our top five expert picks for electric cars that deliver great value while avoiding the tax hike.

Remember, you can buy a brand new or used electric car right here on Carwow. We’re here to help you through every step of your car-changing journey.

1. Hyundai Ioniq 5

First up, we have the Hyundai Ioniq 5. Starting from £40,695 (RRP), the luxury car tax changes in April make certain versions of this stylish, retro-futuristic electric car even more accessible.

The Ioniq 5’s design is eye-catching, and its interior is spacious and nicely finished. While some alternatives may offer longer range or larger boots, if you want an EV which is roomy, practical, thoughtfully designed, and stylish enough to turn heads, the Hyundai Ioniq 5 is an excellent choice.

The highest-range version under the £50,000 threshold comes in the Premium trim (RRP £46,755), offering up to 354 miles on a single WLTP charge. Key features include:

• Two 12.3-inch displays
• Part leather upholstery
• Ambient lighting
• Tinted windows
• Sliding centre console
• 19-inch alloy wheels

2. Mercedes CLA Electric

Good news! Certain trims of this posh electric saloon car will also be exempt from the luxury car tax changes from April. The Mercedes CLA Electric is a handsome little thing and absolutely packed with clever tech, but it’s not very spacious inside and the boot is smaller than alternatives.

However, it’s great to drive and has one of the longest ranges of any EV on sale in the UK. In fact, one version that sits below the £50,000 threshold is its AMG Line Edition version (RRP £49,375), which gives you a claimed range of up to 482 miles on a single charge. You also get the following features:

• AMG style front and rear bumpers
• 18-inch alloys
• Ambient lighting
• Sport seats
• Keyless entry

3. Polestar 2

Up next is the Polestar 2. This stylish electric hatchback offers sleek design, agile handling, and engaging performance. Its cabin feels luxurious, if a bit snug, while the suspension may be firm for some and storage is modest. That said, build quality is excellent, and range is solid, making it a strong contender on any EV shortlist.

Standard Range Prime trim, which sits well below the £50,000 threshold with an RRP of £45,160, would give you more than enough range if you’re looking for something that’ll suit your day-to-day errands. This version gives you up to 344 miles on a single charge, and you get the following features as standard:

• Heat pump
• Panoramic roof
• Harman Kardon sound system
• 360º cameras
• Rear privacy glass

4. Skoda Enyaq

This electric SUV from Skoda is a fantastic all-rounder, with a spacious cabin, huge boot, and comfy suspension paired with good range. It’s handsome in an understated way and very much a head-over-heart choice, though the infotainment system can feel a bit laggy. Still, if you want a car that handles everyday family duties with ease, the Enyaq is well worth considering.

You’ll find that the Sportline trim, with 286hp and up to 334 miles of claimed range, comes in below the £50,000 threshold, with an RRP of £49,270. It’s one for you if you prefer a sportier aesthetic, and it comes with the following features:

• Sport seats in the front
• 20-inch alloy wheels
• 360-degree camera
• Heads-up display
• Canton sound system

5. Tesla Model 3 Premium

Last but not least, we have the Tesla Model 3 Premium. This electric saloon from Tesla has an RRP ranging from £44,990 to £49,990, meaning every version in the lineup falls below April’s luxury car tax threshold.

In many ways, this Tesla Model 3 Premium is the best car Tesla makes. It offers a claimed range of up to 436 miles and centres around a large 15.4-inch touchscreen that controls nearly everything – slick, but not instantly intuitive. Cabin quality is solid if slightly minimal, while boot space is excellent and comfort is impressive. That said, it’s not as practical as the Tesla Model Y, which also sits below the £50,000 threshold, though it offers less range across the lineup.

Here are some standard features you’d expect in a Tesla Model 3 Premium:

• 18-inch wheels
• Rear-seat display
• Panoramic glass roof
• Interior ambient lighting

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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