From April 1, 2025, buyers of electric vehicles in the UK will experience a revolutionary tax overhaul. EVs will lose Vehicle Excise Duty (VED) reliefs, and electric cars over £40,000 will pay an additional Expensive Car Supplement (ECS) of £425 per year — between the second and sixth years of car ownership.
That is, opting for an electric vehicle that is below the £40,000 threshold will cost you more than a £2,100 in tax alone for all those years.
Below are six of the best electric cars you can buy today — all under £40,000 — that have great range, comfort, and value and keep you tax-wise in line in the coming years.
Contents
Quick Comparison Table
| Model | Starting Price | Range (est.) | Key Strengths |
|---|---|---|---|
| Hyundai Ioniq 5 | Under £40,000 | ~240 miles | Spacious, futuristic design |
| Volvo EX30 | ~£38,000 | ~295 miles | Premium feel, safety tech |
| Citroen e-C3 | ~£23,000 | ~199 miles | Budget-friendly, comfort |
| Cupra Born | ~£36,000 | ~260 miles | Sporty design, fun drive |
| Skoda Enyaq | ~£39,000 | ~246 miles | Family-friendly, roomy |
| Alpine A290 | TBC (est. <£40K) | TBC | Performance, style |
1. Hyundai Ioniq 5
Estimated Price: Below £40,000
Range: ~240 miles
The Ioniq 5 merges vintage looks with cutting-edge technology. Inside, you have twin 12.3-inch screens, eco-friendly materials, and plenty of space for people. The entry-level model isn’t a bad range and comfort car, even if boot space is not class-leading.
✅ Best for: Families, tech fans
⚠️ Consider twice if: You need extra boot space
2. Volvo EX30
Estimated Price: Around £38,000
Range: Up to 295 miles
This tiny SUV brings Volvo’s characteristic sophistication to the EV market. A safe bet in middle-grade ‘Plus’ trim, it has a large battery, refined interior atmosphere, and lots of safety and driver assistance features — all for less than £40,000.
✅ Suitable for: Premium ambiance, daily driving
⚠️ Consider carefully if: You require the largest rear seats
3. Citroen e-C3
Estimated Price: From £23,000
Range: ~199 miles
Citroen’s budget EV boasts a comfortable ride and subtlety. It’s no long-distance runner, but for city use and daily shopping excursions, it’s a hero — and comes with plenty of room at the top of the tax band.
✅ Best for: Budget shoppers, city commuters
⚠️ Consider another if: You need more range or additional boot capacity
4. Cupra Born
Estimated Price: Around £36,000
Range: ~260 miles
A sportier sibling to the VW ID.3, the Cupra Born differs through its sharper looks and quick handling. It’s well-spec’d, pleasant to drive, and priced just below the tax band if you choose the base model.
✅ Best for: Stylish drivers, sporty feel to driving
⚠️ Consider again if: You require more interior comfort or space
5. Skoda Enyaq
Estimated Price: From £39,000
Range: ~246 miles
The Enyaq is completely practical. It has a huge interior, a large boot, and a straightforward infotainment system. While more expensive trims hit £40K, the base model is an amazing deal for families.
✅ Ideal for: Families, daily comfort
⚠️ Consider if: You like faster charging or premium features
6. Alpine A290
Estimated Price: TBC (under £40,000)
Range: TBC
Alpine’s new electric hot hatch is something to watch out for. With a sporting pedigree and Renault underpinnings, the A290 will be set to turn in sharply and appeal in terms of design. While final details are not yet in, it should launch below the £40K threshold.
✅ Best for: Sporty drivers, style seekers
⚠️ Be warned if: You need more practicality
Why This Matters
When the VED changes come into effect, choosing an EV for less than £40,000 can save at least £2,125 over 5 years in ECS charges avoided. Combined with reduced running costs and charge incentives, these cars are some of the best deals going.
