Car tax
The expensive car supplement
Checked on 1 April 2026.DVLA, V149: rates of vehicle tax from 1 April 2026 (as of 1 April 2026)
What is the expensive car supplement?
It is £440 a year charged on top of the standard rate for cars with a list price above the threshold. It runs for 5 years from the start of the second licence, so an affected car pays £640 a year rather than £200.
The threshold is the published list price when the car was new, which means a used buyer inherits a charge set by a price nobody paid. It is not shown on the V5C, so the only reliable way to check is the manufacturer's price list for the model year.
What an affected car actually pays
| Case | Standard rate | Supplement | Twelve months |
|---|---|---|---|
| List price under the threshold | £200 | None | £200 |
| List price over the threshold, years two to six | £200 | £440 | £640 |
| The same car from year seven | £200 | None | £200 |
Two thresholds, one supplement
- £40,000 for petrol, diesel, hybrid and plug in hybrid cars. That figure has not moved since the supplement was introduced.
- £50,000 for zero emission cars, for any licence taking effect on or after 1 April 2026.
- The zero emission change applies retrospectively, so most zero emission cars registered from 1 April 2025 are not required to pay the charge at all.
- A zero emission car that took out a second licence before 1 April 2026 pays one year of the supplement and no more.
- Motorhomes are caught by the same rule, on the same thresholds.
How do I find out whether my car is over the threshold?
Look up the manufacturer's list price for the exact model, trim and options at the time it was first registered, not the price on the invoice. If the total published price crossed the threshold, the supplement applies whatever discount was given.
Optional extras count. A car listed at £39,500 with £1,200 of factory options is over the line, and that is the commonest way people are caught by it. Dealer fitted accessories added after registration are not part of the list price.
Common questions
- Is the supplement based on what I paid for the car?
- No. It is based on the published list price, before any discount, including delivery and factory fitted options. A car listed at £41,000 that you negotiated to £38,000 still pays the supplement, and a dealer discount cannot get you under the line.
- How long does the supplement last?
- 5 years, counted from the start of the second licence rather than from the day the car was registered. In practice a car pays it in years two to six, then drops back to the standard rate on its own.
- Does the supplement follow the car if I buy it used?
- Yes. It attaches to the vehicle rather than the owner, so a three year old car that was listed above the threshold when new still has years left to run. It is worth checking before you buy, because it is not obvious from anything on the car.
- Why do electric cars have a different threshold?
- The threshold for zero emission cars rose from £40,000 to £50,000 for licences taking effect on or after 1 April 2026, because electric cars list higher than their petrol equivalents. The change applies retrospectively, so most zero emission cars registered from April 2025 do not pay it at all.
Sources
- DVLA, V149: rates of vehicle tax from 1 April 2026 (as of 1 April 2026)
- GOV.UK, Budget 2025 overview of tax legislation and rates, Annex A: rates and allowances (as of 1 April 2026)
- GOV.UK, Vehicle tax rate tables (as of 1 April 2026)
- GOV.UK, Increase in the Vehicle Excise Duty Expensive Car Supplement threshold for zero emission cars (as of 1 April 2026)
- GOV.UK, Vehicle tax for electric, zero and low emission vehicles (as of 1 April 2026)
- GOV.UK, Pay your vehicle tax by Direct Debit (as of 1 April 2026)
- legislation.gov.uk, Finance Act 2025 section 66: rates of vehicle excise duty, omitting the reduced rate for alternative fuel vehicles (as of 1 April 2025)