Your Definitive Guide to the MGS5 Electric Car Lease

The MGS5 Electric Car Lease - Your Definitive Guide

The Labour Government are not popular with the electric car community in the UK this week. Much to everyone’s frustration Rachel Reeves has proceeded with the intention to change the road fund licence (road tax) on zero-emission vehicles.

While the Labour Government have been forthright with their intention to make the UK a “zero-emission” driving economy, especially with the ZEV Mandate pushing this in a more legalised format, the changes to tax computations on cars which do not have any emissions is a peculiar move. Indeed, there are many news and media articles now lambasting the political powers for following through with these changes.

As we will set out below, it is not just new EVs which face a nominal charge; those drivers already in a pure EV will face yearly tax exposure along with an additional supplement for what is considered to be an expensive car. But with the tax raises aiming to raise around £400 million for the Treasury coffers, a pause or turnaround on this amendment is unlikely.

As updated today (1 April 2025) there are now firm rules on VED under the Government’s vehicle tax for electric, zero and low emission vehicles . The main points to note are:

• If your EV is registered between 1 March 2001 to 31 March 2017 then an annual tax of £20 is payable;  
•  If your EV is registered between 1 March 2017 to 31 March 2025 then an annual tax of £195 (standard rate) is payable; and
•  If your EV is registered on or after 1 April 2025 then a first year rate of £10 is payable with a second year (and onward) standard tax of £195 is payable.

If your EV is considered to be expensive, which translates as having a list price in excess of £40,000, then you will have to pay the additional rate IF the EV is registered on or after 1 April 2025. The additional rate is £425 extra PER YEAR  with the vehicle (for five years).

This is why so many dealerships and car finance companies have been pre-registering their more expensive BEV options in March 2025. This hasn’t necessarily been well received, with the additional £2,125 of car tax over the five years seen as a punishment and disincentive to go electric for many retail and personal customers.

While businesses, fleets and salary sacrifice schemes enjoy corresponding tax benefits, which remain unchanged for 2025, the individual leasing customers are not enjoying like for like benefits.

At a time where the Supreme Court is currently presiding over a court case on car finance compensation, this doesn’t bode well for the future residual values and interest rates on a BEV. When you consider that many of the vehicles being offered are in excess of the £40,000, the extent to which this impacts the UK industry cannot be underestimated. Circa 70% of the new electric vehicles for sale are beyond the £40k threshold.

Our solution? We understand that the tax regime was always going to impact zero-emission

With a changing landscape in the UK, more and more customers are moving into battery technology and this will have a corresponding shortfall on the tax system.

However, more could have been done to protect the personal and retail markets, by employing a lower tax amount for used EVs or increasing the amount being charged on new EVs for fleets and salary sacrifice schemes. It is also not logical to employ the £425 on £40,000 vehicles, which are not really “expensive” anymore.

The Government should consider changing the threshold on the luxury car tax to around £60,000 for those zero-emission options to make this more fair and equitable.

Introducing the new MGS5 electcric car lease

The good news for the new SUV from MG, the MGS5, is that this affordable car will not incur the expensive supplement which we detail above. While any EVs registered on or after 1 April 2025, do have the 1st year £10 and onward £195 standard rate tax, this will be the only cost for an MGS5 customer to manage.

What MGS5 EV options are available to buy or lease?

The two main choices are:

•  SE (£28,495 for standard and £30,995 for long range) this includes key options like 17” alloys, full LED daytime running lights, rear parking sensors, reversing camera, 12.8” HD infotainment system, wireless connectivity, adaptive cruise control, forward/rear collision, blind spot detection, intelligent high beam assist, leather steering wheel, keyless entry, 10.25” driver display, navigation and ISmart app connectivity; and     
• Trophy (from £33,495) this adds 18” alloys, 360 degree parking camera, wireless phone charger, smart electric tailgate, heated front seats, heated steering wheel, power folding door mirrors, rear reading lights, online services, electric driver seat (6-way) and privacy glass.

But how does the MGS5 perform?

As per below there are 2 configurations including:

•  Standard Range -  with a usable battery of 47.1 kWh this RWD offers 125 kW (168hp), top speeds of 99 mph and 0-62 times of 8.0 seconds. Real-world ranges suggest a combined 140 miles in colder weather with warmer temperatures to allow for 190 miles (on a full charge) - 165 miles combined . The 6.6kW AC allows for 0-100% charging times of 8 hours and 30 minutes with the 120 kW DC enabling 10-80% in 26 minutes. The MG has Bidirectional charging - a V2L (vehicle-to-load) which has a 3.3kW AC output from an exterior outlet. It has a 142 mpg equivalent, 453L cargo volume and offers towing capacities of 500kg (unbraked) and 500kg (braked). The heat pump is not available; and

•  Long Range -  with a usable battery of 62.1 kWh this RWD offers 170 kW (228hp), top speeds of 109 mph and 0-62 times of 6.3 seconds. Real-world ranges suggest a combined 185 miles in colder weather with warmer temperatures to allow for 250 miles (on a full charge) - 220 miles combined . The 6.6kW AC allows for 0-100% charging times of 11 hours and 15 minutes with the 139 kW DC enabling 10-80% in 31 minutes. The MG has Bidirectional charging - a V2L (vehicle-to-load) which has a 3.3kW AC output from an exterior outlet. It has a 143 mpg equivalent, 453L cargo volume and offers towing capacities of 500kg (unbraked) and 500kg (braked). The heat pump is not available.

For more information on your specification, just head to the MG website. And for the best leasing deals, speak to our expert team via the MGS5 link.