Expensive Car Supplement UK
£440 for 5 Years
The expensive-car supplement adds £440/year on top of the £200 standard rate for vehicle years 2 to 6 (a 5-year window) if the original list price exceeded the threshold when new. For ICE vehicles (petrol, diesel, hybrid, plug-in hybrid) the threshold is £40,000. For zero-emission vehicles (electric) the threshold was raised from £40,000 to £50,000 on 1 April 2026. Total lifetime cost of the supplement: £2,200.
£440
Per year
On top of £200 standard
5 yrs
Year 2 to 6
Drops off year 7
£2,200
Lifetime supplement
5 x £440
How the supplement is triggered
- The vehicle's original list price (including factory-fitted options, but excluding dealer discounts and post-registration upgrades) is the trigger.
- For ICE vehicles (petrol, diesel, hybrid, PHEV): the threshold is £40,000. List price strictly exceeding £40,000 triggers the supplement.
- For zero-emission vehicles (pure electric): the threshold was £40,000 until 31 March 2026, raised to £50,000 from 1 April 2026.
- The supplement runs for five years: vehicle years 2 through 6 (counted from first registration date).
- From year 7 onwards: only the standard rate applies. The supplement drops off.
- Once triggered, the supplement is fixed for the vehicle: it follows the registration, not the owner. A second-hand buyer of a 2-year-old supplement-eligible car inherits the remaining 4 years of supplement.
Worked examples
| Vehicle | List price | Supplement? | Yr 2-6 / yr |
|---|---|---|---|
| Ford Focus 1.0 EcoBoost | £27,000 petrol | No - under £40k | £200 |
| Nissan Qashqai 1.3 mHEV | £35,000 petrol | No - under £40k | £200 |
| BMW 320i | £42,000 petrol | Yes - ICE supplement | £640 |
| Tesla Model 3 Long Range | £47,000 electric | No - under £50k EV | £200 |
| Tesla Model Y Long Range AWD | £52,000 electric | Yes - EV supplement | £640 |
| Range Rover Evoque D200 | £44,000 diesel | Yes - ICE supplement | £640 |
What changed at April 2026
- - EV expensive-car threshold raised from £40,000 to £50,000. Deliberate adjustment to keep mainstream EVs (Tesla Model Y RWD, Tesla Model 3, Polestar 2, Hyundai Ioniq 5, MG4) out of the supplement net.
- - Supplement amount raised from £425 to £440 per year. So the "over-threshold" combined rate is now £640/year (was £620 in 2025/26).
- - ICE threshold unchanged at £40,000. No change for petrol, diesel, hybrid, or PHEV.
Source: HM Treasury Autumn Budget 2024 and Spring Statement 2025 documents on gov.uk.
Common questions
What if I bought a used car that's over £40,000?
The list price test is the original list price at first registration, not the price you paid. A 4-year-old BMW M3 you buy used for £55,000 is in year 4 of its 5-year supplement window - you inherit it for the remaining years. A 7-year-old vehicle is past year 6 and the supplement no longer applies.
What counts towards the list price?
The on-the-road list price as registered with DVLA, including manufacturer-fitted optional extras and metallic paint. Dealer discounts, post-registration aftermarket upgrades, and PCP-finance interest do not count.
Does the supplement apply to pre-2017 cars?
No. The expensive-car supplement only applies to cars first registered on or after 1 April 2017. Pre-2017 cars use the older CO2-banded annual rate system with no supplement.
Why was the EV threshold raised to £50,000?
HM Treasury raised the EV threshold deliberately to reduce the friction the April 2025 EV-VED reform created. Most mainstream EVs (Tesla Model Y RWD, Model 3, Polestar 2, Ioniq 5, MG4) sit between £40k and £50k. The £50k threshold keeps them out of the supplement; only premium EVs (Model Y Long Range AWD, BMW i4 M50, Mercedes EQS) cross the line.
Related guides
Electric Car Tax£50k EV threshold + worked examples.Tesla Model YLong Range AWD crosses the £50k line.Range Rover EvoqueEvery trim crosses £40k - supplement default.BMW 3 SeriesMost trims over £40k - 6-year supplement math.April 2026 ChangesEvery VED rate that changed at the new tax year.Full CalculatorEnter exact CO2 + list price for your trim.
Source: gov.uk/vehicle-tax-rate-tables (2026/27 schedule) + HM Treasury Autumn Budget 2024 + Spring Statement 2025. Verified May 2026.