News

Clarity on Expensive Car Supplement

Published
06 Jan 26
White electric car in foreground connected to charger, blue electric car in background, also connected to charger

The BVRLA has clarified the changes to the Expensive Car Supplement with the Driver and Vehicle Licensing Agency (DVLA). From April, all zero-emission vehicles that are valued between £40,000 and £50,000 will no longer need to pay the Expensive Car Supplement in years 2 to 7.

The DVLA has confirmed that for zero-emission vehicles taxed through BERT, the bulk electronic relicensing system, those vehicles in the £40,000 - £50,000 price bracket on the February tax run for an April date of liability will no longer show the Expensive Car Supplement. Anyone who uses an alternative method of taxation and taxes the vehicles early will still pay the Expensive Car Supplement unless taxing in the month the tax is due.

In addition, unless the V5 (vehicle registration document) is suppressed, owners will be receiving a new version of the V5 which will no longer show that the vehicle is subject to the Expensive Car Supplement.

Members may wish to advise any their parties who manage their V5s that this will be happening.

Vehicle Excise Duty for expensive car supplement threshold increase for zero emission vehicles - GOV.UK