The BVRLA would like to help clarify which vehicles are subject to the Expensive Car Supplement once the exemption for zero-emission vehicles is lifted after 1 April.
As announced in the Autumn Statement 2022, new zero-emission cars registered on or after 1 April 2025 will be liable to pay the lowest first-year rate of VED. If the car has a list price exceeding £40,000, it will be subject to pay the Expensive Car Supplement from year 2 (for 5 years). The Expensive Car Supplement will not be applied to zero-emission cars registered before 1 April 2025.
- Any EV registered prior to 1 April will not have to pay the Expensive Car Supplement
- BUT they will pay tax on renewal. (e.g EV registered 1 Feb 2025 from 1 Feb 2026 will pay the standard rate of tax)
- Any EV registered after 1 April will pay the first year rate of tax AND if over £40K list price the Expensive Car Supplement.
The Chancellor’s Budget in October 2024 also announced changes to Vehicle Excise Duty (VED) and taxation of double-cab pickups, both of which are likely to impact BVRLA members and their customers. The BVRLA has updated its factsheets to reflect the latest information.
Both factsheets are available to members via the BVRLA website. The DVLA has also published a short Q&A about the changes to VED.
