🚗 Heads up, drivers! 🚗 Big changes are coming in 2026 regarding the Vehicle Excise Duty (VED), and it might affect your wallet. From April 1, 2026, the threshold for the VED Expensive Car Supplement, often known as the ‘luxury car tax’, is jumping. If you’re eyeing a zero-emission beauty like an electric vehicle (EV), know that the threshold price is increasing from £40,000 to £50,000. What does this mean for you? If you’re buying a car over £40k but under the new £50k mark, you’ll dodge the extra ECS charge when you get a licence! 💸
Here’s the scoop: this Expensive Car VED is usually paid yearly and hits at £425 annually for the first five years after the car’s first birthday. Initially, many EVs and hybrids were spared the £195 flat rate that newer petrol and diesel rides dish out. But as of April 1, 2025, that exemption is history, and EVs and hybrids now pay like their fuel-guzzling counterparts. 💡
Crucially, this tax hike doesn’t apply to petrol and diesel cars next April. And for those cars registered from April 1, 2025, onwards, there’s a little relief: the ECS charge may only sting for a single year for some. 🤞
As for the basics, if your car’s registered after April 1, 2017, the initial tax varies based on emissions. Petrol and diesel can see rates swing from £10 for zero-emission models to a hefty £5,490 for those with emissions over 255g/km.
For subsequent payments, expect these rates across the board—petrol, diesel, electric, or alternative fuel:
– £195 for a single 12-month payment
– £204.75 spread over 12 monthly Direct Debits
And for those luxury rides over £40k:
– £620 for a single 12-month payment
– £651 if using Direct Debit over 12 months
Stay ahead by checking the government’s website for full VED rates. 🚘 Don’t get caught out by these updates in 2026—happy driving! 🚦