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.
This means that zero-emission cars with a list price which exceeds £40,000, but does not exceed £50,000, will no longer be required to pay the ECS charge when they take out a licence which comes into effect on or after 1 April 2026 which is not a first vehicle licence. The threshold will be maintained at its current level of £40,000 for all other cars.
The change applies retrospectively, meaning that most vehicles registered from 1 April 2025 will not be required to pay the charge.