VAT Increase

VAT increase in the UK Emergency Budget 22th June 2010 - The UK Government have announced today that VAT is to go up from 17.5% to 20% on 4th January 2011. This will include VAT on new cars. It is also still unsure whether the government will continue with the £5000 grant which is due to start January 2011.

Both of these things may affect the electric car market. Two manufacturers have already announced prices for their electric cars Nissan and Mitsubishi. Mitsubishi have already said that the price will be reviewed in the UK and an announcement will be made.

The Nissan Leaf price is £28,350 with the new VAT increase it will be £28,953, with the £5000 grant it will be £23953. An increase of £603

The Mitsubishi i MiEV price is £38,699 with the new VAT increase it will be £39,522, with the £5,000 grant it will be £34,522. An increase of £823

This VAT increase will affect the car market, but we will not know to what degree until it takes place next year.

Return from VAT Increase to electric car blog page.