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.
£640 a year with the supplement
| 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 |
List price thresholds of £40,000 and £50,000
- £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.
Who pays the expensive car supplement?
Cars first registered on or after 1 April 2017 whose original list price was over the threshold, from the second licence onwards. It does not apply to cars first registered before that date, which stay in the lettered CO2 bands or the engine size bands. Zero emission cars first registered between 1 April 2017 and 31 March 2025 pay the standard rate and no supplement, whatever the list price was.
The charge follows the car. Selling it does not wipe the remaining years. A company car still pays it: vehicle excise duty is owed by the registered keeper, and benefit in kind is a separate income tax charge on the employee. Motorhomes taxed as passenger vehicles are caught on the same thresholds.
What does a 2018 car listed at £48,000 pay?
For a petrol, diesel or hybrid car, the supplement, because £48,000 is over £40,000 and the car was first registered after 1 April 2017. For a zero emission car first registered in 2018, no supplement, because cars registered between 1 April 2017 and 31 March 2025 pay the standard rate only. £48,000 is also under the £50,000 zero emission threshold that applies to newer electric cars from 1 April 2026.
Example
A 2018 petrol car with a list price of £48,000
- First registered
- 2018
- Fuel
- Petrol
- Original list price
- £48,000
- Factory options
- Already in that list price
- Tax year
- 2026/27
- The published list price is over £40,000, so the supplement applies to petrol, diesel and hybrid cars.
- It runs for 5 years from the start of the second licence, which is years two to six.
- Each of those years costs £200 plus £440, which is £640.
- A used buyer in year four still has years left at £640. From year seven it drops back to £200.
Years two to six cost £640 a year. The same list price on a 2018 electric car would not attract the supplement.
How do I tax a car that pays the supplement?
The same routes as any other UK car. The supplement is part of the licence, not a second payment. Use the GOV.UK vehicle tax service with a V11 reminder, the 11 digit V5C reference, or the 12 digit new keeper slip. Phone 0300 123 4321 if you would rather not use the website. Direct Debit is not available by phone. A participating Post Office can take a V5C, a new keeper slip, or a V62 from the current keeper. Northern Ireland Post Office applications also need the published insurance and test evidence.
- Confirm the first registration date is on or after 1 April 2017, and look up the original list price including factory options.
- If that price is over the threshold, expect £640 a year in years two to six.
- Tax online, by phone on 0300 123 4321, or at a participating Post Office.
- Twelve months up front is the cheapest way. Calculated six month cost is £352.00. Calculated monthly Direct Debit is £56.00.
- If the car will stay off a public road, make a SORN instead of taxing it.
Do I get a refund if I sell it or take it off the road?
Yes, for any full months left on the current licence, including the supplement for those months. DVLA cancels the tax and cancels a Direct Debit if you had one. A refund cheque is sent to the name and address on the V5C. You will not get back any card fee, the 5 per cent surcharge, or the extra built into a six month licence. Contact DVLA if the cheque has not arrived after 8 weeks. The remaining years of the supplement stay with the car. A SORN is free. The only published journey for a SORN vehicle is to or from a pre booked test.
What if I do not tax it?
If there is no tax and no SORN, DVLA can issue a late licensing penalty of £80, reduced to £40 if paid within 33 days. Use or keeping on a public road can then lead to an out of court settlement of £30 plus 1.5 times the outstanding tax, or a court penalty of £1,000 or five times the tax, whichever is greater. A disabled tax class vehicle still has to complete the tax process even when the amount due is nil.
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. The threshold is £40,000 for petrol, diesel and hybrid cars, and £50,000 for zero emission cars on licences taking effect from 1 April 2026.
- 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 of £200 on its own. There is nothing to cancel and no form to send when year seven arrives. A used buyer inherits whatever is left of those 5 years.
- 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 and it is not printed on the V5C. The bill is £640 a year rather than £200 until those years end.
- 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. Zero emission cars first registered between 1 April 2017 and 31 March 2025 pay the standard rate and no supplement, whatever the list price was.
- Do motorhomes pay the expensive car supplement?
- Yes, where they are taxed as passenger vehicles and the original list price was over the threshold. Motorhomes are caught by the same rule, on the same thresholds of £40,000 for petrol, diesel and hybrid and £50,000 for zero emission. A motorhome taxed in the private and light goods class on engine size is a different system and does not use this supplement.
- How do I pay the supplement, and can I spread it?
- It is collected as part of the vehicle licence, not as a separate bill. Tax the car through GOV.UK, by phone on 0300 123 4321, or at a participating Post Office. Direct Debit is not available by phone. Monthly or six monthly Direct Debit adds a 5 per cent surcharge to the whole amount, including the supplement. A single annual Direct Debit payment carries no surcharge. Northern Ireland Post Office applications also need the published insurance and test evidence.
- Do I get the supplement back if I sell the car or make a SORN?
- You get a refund for any full months left on the current licence, including the supplement for those months. DVLA cancels the tax, cancels a Direct Debit if you had one, and sends a cheque to the name and address on the V5C. You do not get the 5 per cent Direct Debit surcharge back, or the extra you paid for a six month licence, or any card fee. Contact DVLA if the cheque has not arrived after 8 weeks. The remaining years of the supplement stay with the car for the next keeper.
- Does a company car still pay the supplement?
- Yes. Vehicle excise duty, including the supplement, is charged on the vehicle. The registered keeper, usually the employer or the leasing company, pays £640 a year in years two to six if the original list price was over the threshold. Benefit in kind is a separate income tax charge on the employee and does not replace vehicle tax. A disabled tax class vehicle still has to complete the tax process even when the amount due is nil.
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)
- GOV.UK, Tax your vehicle (as of 10 September 2026)
- GOV.UK, Cancel your vehicle tax and get a refund (as of 10 September 2026)
- GOV.UK, Register your vehicle as off the road (SORN) (as of 10 September 2026)
- GOV.UK, Vehicles exempt from vehicle tax (as of 10 September 2026)
- DVLA, DVLA enforcement of vehicle tax, registration and insurance offences (as of 15 July 2026)