First-year vehicle excise duty is a fraction of that in countries such as France and the Netherlands

Low taxation on petrol SUVs in the UK compared with much of Europe is inviting a glut of large, polluting luxury cars, according to an analysis by a green thinktank.

The tax paid when buying a new petrol or diesel SUV in the UK is only a fraction of the levies in neighbouring countries, including France and the Netherlands, and lower than many others in Europe, making it a “tax haven” for the bigger, less environmentally friendly vehicles, the report from Transport & Environment (T&E) found.