Expensive Car Suppliment-Additional rate VED

elverdundee

Hi,

We purchased a car Sept 2025 which was £43,000 and at that time was subject to the additional VED charge. This luxury car limit was up-revised in November to £50,000. My road tax renewal has just landed and its a shocker at £640 for the year.

I have read that this was retrospective and as we purchased after April 2025 should not be caught by this levy. Had we purchased same car 2 months later would be exempt.

Can someone advise, has DVLA have got my bill wrong? if so there could be many others in the same situation paying the levy unnecessarily.

It would be good to get a clear unbiased view on this.

sheramber

I think there is a previous thread where it said you had to apply to DVLA for the back dated exemption.

DrEskimo

https://forums.moneysavingexpert.com/discussion/6679352/expensive-car-suppliment-additional-rate-ved

Is it a EV? The increase only applied to EVs i believe.

Mildly_Miffed

Zero Emission Vehicles (EVs) only. Not hybrids. Not plug-in hybrids.
https://www.gov.uk/government/publications/vehicle-excise-duty-for-expensive-car-supplement-threshold-increase-for-zero-emission-vehicles/increase-in-the-vehicle-excise-duty-expensive-car-supplement-threshold-for-zero-emission-cars

"As announced at Budget 2025, this measure increases the VED (Vehicle Excise Duty) Expensive Car Supplement (ECS) threshold for zero-emission cars, from its current level of £40,000 to £50,000. … The threshold will be maintained at its current level of £40,000 for all other cars."

If your vehicle was applicable, you wouldn't need to do anything - you'd just not get charged the extra. Since you are, I presume it isn't.

Iceweasel

Was it brand new in Sept 2025?

If not what is the date of first registration?

elverdundee

Yes its was an brand new EV first registered 1st Sept 2025.

What I was trying to say is that most threads I have found suggest that the raised £50,000 should be retrospectively applied to my vehicle even though it was registered 2 months before the limit was increased. it looks like the government saw the error in their policy and adjusted it.

Mildly_Miffed

You paid £43k - but was that discounted from list?

What was the actual full list price, including all options? Because that's the number that matters for the supplement, not the invoice value.

sheramber

https://forums.moneysavingexpert.com/discussion/6679352/expensive-car-suppliment-additional-rate-ved

posted 2 April

https://forums.moneysavingexpert.com/discussion/6664264/expensive-car-tax-refund-denial-by-dvla