Attention all UK drivers! Brace yourselves for a change in your car expenses this spring. Come April 1st, 2026, a tweak in the Vehicle Excise Duty (VED) is set to roll out. Good news for those eyeing zero-emission beauties like electric vehicles (EVs) worth between £40,000 and £50,000. The threshold for the Expensive Car Supplement (the luxury car tax) will leap from £40,000 to £50,000. This means no more extra charges for cars priced under £50k.
Previously, EVs and hybrids dodged the £195 annual flat rate common among most vehicles. But, since April 2025, they’ve been on the same playing field as petrol and diesel models. A heads-up: petrol and diesel vehicle thresholds remain untouched, even with the luxe tax changes.
If your car hits the road from April 1st, 2025, onwards, chances are you can skip the fee entirely, thanks to rules swinging into effect a year prior. Remind yourself of the initial tax payment saga: varies by fuel type and emissions—think anywhere from a tenner to £5,490. Post that, it’s a standard fare—£195 if you pay upfront, or a bit extra for other plans.
For pricier rides above £40,000, check this out: annual payment hits £620. Choosing direct debit? Expect a touch more at £651 annually or £325.50 per six months.
Curious about the nitty-gritty of VED rates? The government’s got all the details on their website. Keep cruising smoothly and stay informed on what these changes mean for your wheels and wallet! 🚗💨 #CarTaxUpdate #ElectricVehicles #UKDrivers