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<p>Cars with a list price when new exceeding £40,000 pay an additional supplement
for five years as well as paying the standard rate of Vehicle Excise Duty (VED), which
means those who can afford the most expensive cars pay more than the standard rate
paid by other drivers.</p><p> </p><p>The £40,000 threshold was set as a suitable way
of distinguishing the more luxury end of the new car market. As around 80% of all
new cars currently have a list price below £40,000, the Government considers this
threshold to be suitable.</p><p> </p><p>As with all taxes, the expensive car supplement
is kept under review and any changes are considered and announced by the chancellor.</p>
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