The expensive car supplement explained
If a car cost more than £40,000 when new, it pays an extra £440 a year in vehicle tax from the second to the sixth year of its life. For electric cars the threshold is £50,000 from April 2026. It is based on the original list price, not on what you paid.
Updated 14 October 2026
What counts as the list price
The list price is the published price of the car when new, including VAT and any options fitted at the factory, before discounts. Dealer-fitted accessories added later do not count.
This catches people out in two ways. A well-optioned mid-range car can cross £40,000 even though the base model does not. And a used buyer pays the supplement for the remaining years even though the car is worth a fraction of that today.
How long it lasts
The supplement applies for five years, starting from the second year the car is taxed. After the car is six years old, it drops back to the standard rate. If you are buying a used car around four or five years old, check how many supplement years remain. It can be a meaningful part of the running cost.
Electric cars
Electric cars started paying vehicle tax in April 2025. From April 2026 the supplement threshold for electric cars rose to £50,000, so an electric car listed between £40,000 and £50,000 does not pay it. Electric cars registered before 1 April 2025 are exempt from the supplement altogether.
How to check before you buy
The DVLA vehicle enquiry shows the current tax status and when it expires; the amount payable is shown when you go to tax the car. Odomint shows the tax status and expiry for your car and every car you look up.
Buying used: the sums to do
A four-year-old car that cost £45,000 new has two supplement years left: at £440 a year that is £880 on top of the standard rate before it drops out. A two-year-old car in the same position has four years left: £1,760. On a modestly priced used car, that can change which one is better value.
The amount due is shown when you tax the car, so it is worth asking the seller what the last tax payment was. If the car is just under the threshold, check the original specification: factory options can push a car over £40,000 even when the base model is well below it.
Common questions
How much is the expensive car supplement in 2026?
£440 a year from 1 April 2026, on top of the £200 standard rate, for cars with a list price over £40,000 (£50,000 for electric cars).
Do I pay the supplement on a used car?
Yes, if the car’s original list price was over the threshold and it is between two and six years old. It follows the car, not the owner.
Does the supplement apply forever?
No. It applies for five years from the second year the car is taxed, then the car pays the standard rate.
Check any car before you buy it
MOT history, every advisory and the full mileage record are free for any UK registration. An Odomint Check adds outstanding finance, insurance write-offs, stolen markers and salvage history, with a £10,000 data guarantee.