Motor Vehicles: Excise Duties

The Expensive Car Supplement (ECS) is a supplement to Vehicle Excise Duty (VED) payable by vehicle keepers for five years, from years two to six following a car's first registration.

The rate is currently £440 per year, and is charged in addition to the standard rate of VED, which is currently £200 per year. The ECS applies to new petrol/diesel and hybrid cars with a list price of £40,000 or more, and as announced at Budget 2025, as of 1 April 2026 the ECS applies to new zero-emission cars with a list price of £50,000 or more which are first registered on or after 1 April 2025. The additional charge was introduced so that those who can afford to access the most expensive cars make a fair contribution.

The Government continues to view the Expensive Car Supplement (ECS) as a suitable way of distinguishing the more luxury end of the new car market. Although average list prices of cars have increased since the ECS was introduced, nearly two-thirds of petrol, diesel and hybrid vehicles still fall below the £40,000 threshold.

The Government annually reviews the rates and thresholds of taxes and reliefs, including Vehicle Excise Duty and the ECS, to ensure that they are appropriate and reflect the current state of the economy.