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last mo.

UK Raises First-Year Car Tax and Reviews £40,000 Expensive Car Supplement

The emissions-based overhaul is designed to strengthen incentives for zero-emission vehicles through wider cost differences across fuel types.

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Overview

  • First-year VED for low-emission petrol, diesel and hybrid cars emitting 1–50g/km of CO2 has jumped from £10 (or zero for hybrids) to £110.
  • Vehicles in the 51–75g/km band now incur £135 in first-year duty, up from £30 (or £20 for hybrids).
  • Highest-emitting models over 255g/km face a first-year charge of £5,490, up from £2,745, while cars emitting 226–255g/km pay £4,680, double the previous rate.
  • Electric vehicles now pay a nominal first-year fee and those costing more than £40,000 may incur the Expensive Car Supplement.
  • Transport ministers are reviewing the £40,000 supplement threshold following industry and consumer calls to ease the burden on buyers of cleaner models.