Under the Expensive Car Supplement, any car that costs more than £40,000 when purchased new incurs an additional annual fee of £410 for five years. Electric cars have previously been exemped from paying the expensive car supplement, however, from 1st April 2025 any new EVs priced over £40,000 will be subject to this tax.
The £40,000 threshold is based on the manufacturer's official list price including optional extras, rather than the actual price paid by the buyer, which may factor in manufacturer discounts or promotions.
In line with these changes, we have compiled our Top 10 EVs, which are under £40,000. This includes EVs which are popular with our customers, compact city cars and SUVs.
MG 4
The MG4 quite often appears in a top 10 list, and for good reason. The MG4 EV is MG's first fully electric hatchback, measuring similarly to the Volkswagen ID.3, Kia Niro, and Vauxhall Astra.
This compact SUV is available in three specifications: the MG4 EV SE Standard Range, equipped with a 51 kWh battery offering a range of up to 218 miles; the SE Long Range, which utilises a larger 64 kWh battery for a distance of up to 281 miles; and the Trophy Extended Range, with a 77 kWh battery that provides an electric range of up to 323 miles.
Then, there is the XPower, featuring a 64kWh battery that offers an impressive range of 248 miles (WLTP). It boasts a top speed of 124 mph, accelerates from 0 to 62 mph in just 3.8 seconds, delivers 435 brake horsepower, and generates 60 Nm of torque.
List prices for MG4s range from £26,40 - £36,640 depending on trim level and battery size, but even if you choose the top spec MG 4 Xpower, with premium paint, the list price currently sits at just over £37,000.
MG ZS
Alongside the MG4, The MG ZS appears on many a top 10 list. Well-known for its spaciousness, practicality, and a wide array of safety and driver assistance features, the ZS have proven popular with both our Business and Salary Sacrifice Customers.
The ZS is offered in two versions: the SE and the Trophy, with both available in standard or long-range configurations. The standard range ZS is equipped with a 51kWh battery, delivering 198 miles (WLTP), while the long-range variant features a 73kWh battery, allowing for 273 miles on a single charge (WLTP).
In addition to its practical advantages, the ZS EV includes rapid charging capabilities, enabling it to charge from 10% to 80% in just 30 minutes when using a 100kWh charger.
List prices for the MG ZS range from £30,440 to £35,440 for the Trophy Long Range variant.
Mini Cooper
In 2024 the new MINI Cooper was released. The iconic three-door design has been given sharper lines, striking new LED headlights and bigger wheels. Its go-kart handling, race-inspired sports seats, and a variety of exterior color options preserve the racing spirit. The technology has also advanced, offering the brand’s most intuitive user experience to date, including a world-first circular OLED display and a voice-activated MINI Intelligent Personal Assistant.
The all-electric MINI Cooper is available as the MINI Cooper E Classic, or the MINI Cooper SE, in three trims: Classic, Exclusive, and Sport, across three different levels each offering unique features such as panoramic sunroofs, surround sound systems, and Driving and Parking Assistant Plus.
With two battery options, the larger 54kWh battery provides a range of up to 250 miles (WLTP) on a single charge.
For those considering a new Mini Cooper, prices range from £30,607 (Mini Cooper E) to £39,120 (Mini John Cooper Works Electric, Sport Level 1, Standard paint, no additions). However, some variants, and additions will push above the £40,000 threshold.
Mini Cooper Electric Leasing Deals
Hyundai Kona
Sharing its K3 platform with the Kia Niro EV, the second-generation Kona Electric is similar in size to the recently released Kia EV3, Honda E NY1, and Mazda MX-30, positioning it as a fully electric subcompact SUV.
Available in four trims; Advance, N-Line, N Line S and Ultimate, only the Kona Advance falls under the £40,000 threshold for the expensive car supplement. Choose between a 45kWh battery (Standard Range) for up to 234miles WLTP, or the Long Range variant, featuring a 65kWh battery providing up to 319miles WLTP.
Add the comfort pack (heated front and rear seats, heated steering wheel, privacy glass and wireless charger) and the Hyundai Kona Advance 65kWh Long Range comes in just under the £40,000 mark, with a list price of £39,520.
Hyundai Kona Advance Leasing Deals
Skoda Elroq
Serving as the electric counterpart to the ICE Karoq, the Skoda Elroq is comparable in size to the Hyundai Kona, Kia Niro, Volvo EC40, and BYD Atto 3.
The Škoda Elroq offers three battery sizes and a variety of powertrains. The base Elroq 50 delivers 125 kW, while the Elroq 85x comes with all-wheel drive. The Elroq 85 boasts a range exceeding 560 km (WLTP) and supports rapid charging up to 175 kW, enabling its 82 kWh battery to recharge from 10 to 80% in just 28 minutes. Smaller battery options in the Elroq 50 and 60 can recharge in 25 minutes or less.
Only the Skoda Elroq Sportline 85 82kWh 210kW has a list price above the £40,000 threshold, with a basic starting price of £40,935. All other variants have prices starting from below this, however its important to be aware that with additions, other variants are likely to go over the threshold.
List Pricing (starting from)
Skoda Elroq SE 55kWh 125kW £30,835
Skoda Elroq SE L 63kWh 125kW £32,685
Skoda Elroq Edition 60 63kWh 150kW £33,785
Skoda Elroq Edition 85 82kWh 210kW £37,985
Kia Niro EV
Previously known as the e-Niro, the Kia Niro EV is in its second generation, sharing its platform with the aforementioned Hyundai Kona it is often compared against the MG4, and Renault Megane E-Tech.
With just one powertrain option available, featuring a single electric motor that drives the front wheels, delivering 201bhp. It comes equipped with a standard 64.8kWh lithium-ion battery, offering an impressive WLTP range of 285 miles. You can choose from four distinct trim levels: 2, 3, 4, and Horizon Special Editions with the latter being the most fully equipped.
Cupra Born
Belonging to the Volkswagen Group, the Born shares the electric platform with the Volkswagen ID.3. However, the Born has been designed to offer a more aggressive look and increased power, presented as the sportier alternative to the somewhat ‘classic’ ID.3.
The entry-level versions of the CUPRA Born are equipped with a 58 kWh battery, delivering 230 PS and an impressive range of up to 262 miles on a single charge. For those seeking more distance, a larger 77 kWh battery option is available, extending the range to 342 miles.
In 2024, the high-performance 'VZ' CUPRA Born was introduced, featuring a 79 kWh battery, generating 326 PS, and capable of accelerating from 0 to 62 mph in just 5.6 seconds.
Whilst the Cupra Born VE 77kWh e-Boost and Cupra Born VZ have list prices above £40,000, the Cupra Born V1, V2 and V3 with the 59kwh battery fall below this threshold.
List prices, starting from
Cupra Born V1 59kWh 230PS e-Boost £35,440
Cupra Born V2 59kWh 230PS e-Boost £37,210
VW ID.4
The ID.4 was a popular choice in 2024, appearing in the SMMT Top 10 EVs sold in 2024, and the Lease Electric Customers Top 10 of 2024.
Available in several trims, including ID.4 Life, ID.4 Business, ID.4 Style, and ID.4 Max variants. However, only the base spec VW ID.4 Match Pure is available for under £40,000.
With a starting price of £39,580 the Volkswagen ID.4 Match 52kWh Pure 170PS 1-speed automatic 5 Door, offers a range of up to 221 miles (WLTP) and impressive rapid charging capabilities, with a 10-80% charge taking just 25 minutes using a 145kW charger. Despite being the base model, it includes features such as 19-inch "Hamar" black diamond-turned alloy wheels, an auto-dimming rearview mirror, heated front seats, keyless entry and ignition, ambient lighting, 11kW AC charging, an auto-dimming rearview mirror, and Dynamic Road sign display.
Volkswagen ID.4 Match Pure Leasing Deals
BYD Atto 3
Build Your Dreams have been producing cars since 2005, and have other areas of expertises including rail transit and buses, renewable energy and electronics.
The BYD ATTO 3 is an innovative SUV from BYD, built on the cutting-edge e-Platform 3.0. It features a compact exterior while providing an unexpectedly spacious interior.
Available in Comfort or Design trims, the ATTO 3 is powered by a 60kWh battery, delivering a range of up to 261 miles according to the WLTP standard. Its rapid-charging capability allows for a 10-80% charge in just 44 minutes with a 150kW charger. Additionally, the vehicle incorporates advanced regenerative braking technology to enhance efficiency and extend the driving range. The boot space is generous at 555 litres, which expands to 1,338 litres when the seats are folded down. In terms of size, it competes with models such as the Ford Explorer and Volvo C40.
Both the BYD Atto 3 Comfort and Design trims fall below the £40k threshold, with prices starting from £37,695 for Comfort, and £39,695 for Design variants.
Tesla Model Y RWD
SMMT reported that in 2024, a total of 32,862 Tesla Model Ys were sold, securing its position as the best-selling electric vehicle and the fifth best-selling car among all fuel types in the UK.
The Tesla Model Y is a compact SUV that builds on the success of the Model 3, offering an impressive range of up to 326 miles on a single charge. Its interior is crafted to be spacious and contemporary, featuring advanced technologies and a stylish design, accentuated by a panoramic glass roof.
Standard features enhance the Model Y's functionality, including 40/20/40 split-folding rear seats for versatile storage options. Depending on the configuration, cargo space ranges from 854 litres in the five-seat arrangement to an impressive 2,158 litres when the seats are folded down.
The sole Tesla Model Y priced below the £40,000 mark is the Model Y RWD, which starts at £39,990. However, due to upcoming changes to the Model Y, we are unlikely to see many new Model Y RWDs available. The new Model Ys, anticipated to be released in May, will start at £46,900 and will consequently fall under the Expensive Car Supplement category.
These rates and allowances are derived from the Autumn Budget 2024 issued by the UK, Northern Ireland, Scottish, and Welsh Governments and are subject to change. To navigate these complexities, Lease Electric recommends consulting your financial advisor or accountant.
All list pricing correct at the time of writing (20.02.2025). Please check this independently before placing an order. To confirm list pricing in advance of placing an order, please contact the Lease Electric Team.
If you would consider a pre-registered vehicle, and would like to know what options are available, contact the team.
Useful Links:
Upcoming Car Tax Changes 2025/2026
Upcoming Financial Changes and EV Salary Sacrifice
Upcoming Tax Changes for Vans 2025
Upcoming Automotive Regulation Changes 2025-2030
HMRC Guidance - Vehicle tax for electric, zero or low emission vehicles