Isn’t the £40k+ ‘luxury’ tax simply an additional rate of road tax (VED) for the first 5 years? If so, any inclusion of EVs won’t make the slightest bit of difference to the Motability scheme as all Motability cars are exempt anyway.
You are right @Glos Guy, however I wonder how much it will hit residual values. If I was in the market for a second hand car, paying £600 ish a year in road tax, I certainly would avoid. My personal car – outside of the Motability scheme – I’m currently paying £20 road tax a year! 😀
It certainly won’t help. Even with the current exemption, only a very small percentage of private new car buyers are currently purchasing EVs and, as I understand it, there is even less interest in used EVs. I can’t see how the government can possibly stick with the 2030 / 2035 dates, even though they are saying that will (at the moment), but maybe keeping EVs exempt from the luxury tax surcharge might be one of the outcomes of the fast track consultation announced last week. I’m sure that it will be on the list of things that the car manufacturers will push for although, in itself, I don’t think it will make much difference as the current exemption hasn’t moved the dial enough.
I don’t agree with subsidies in any industry, as they are paid for by everyone through taxes and tend to benefit the suppliers far more than customers, but it is clear that the ‘stick’ approach to pushing everyone towards EVs isn’t working, so a ‘carrot’ approach will have to be taken if they have any hope of shifting public opinion.