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Large Vehicle Levy proposed by Transport & Energy

Mark Moran
16 September 2025
T&E`s Large Vehicle Levy explainer
T&E`s Large Vehicle Levy explainer

 

The UK’s vehicle tax system is failing to keep up with the SUV boom, leaving the heaviest, most polluting cars severely undertaxed under the current Vehicle Excise Duty (VED) as they surge to dominate the market. 

A new analysis by Transport & Environment UK sets out what the energy advocacy sees as a SUV tax loophole: UK buyers pay up to 20 times less tax for the biggest models than in other European countries. 

For example, a UK buyer of an £85,000 BMW X5 pays just...

+88% more

 

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