New £10,000 car tax rule change in 2026 to affect thousands of road users – Daily Express
Under current rules, owners of new vehicles must pay an additional £425 per annum for a period of five years if their car has a list price of over £40,000. Electric cars are no longer exempt from the rule, meaning many middle-range EVs are being slapped with the added fee. However, under HMRC changes, ECS fees will only be payable to vehicles valued at over £50,000.
READ MORE: Drivers face new 2026 car tax hike with bills up within months
READ MORE: Drivers of these cars set for £200 vehicle tax increase in 2026
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HMRC explained: “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 high inflation on vehicles over the past few years means that many family cars are valued above the £40,000 threshold. Owners of vehicles such as the Volkswagen Golf, Vauxhall Astra, Ford Kuga and Peugeot 3008 may be paying the fee but could be exempt under the changes.
Those behind the wheel of vehicles valued between £40,001 and £50,000 will instead pay the standard VED rate. This currently stands at £195 per annum but the bill is expected to rise from April in line with annual inflation.
HMRC stressed that the policy would lose money for the Treasury, with a possible £50million in potential revenue lost between 2026 and 2027.
HMRC added: “This measure will positively impact individuals who purchase or own an EV first registered from 1 April 2025 with a list price between £40,001 and £50,000 by reducing their VED liability, with increasing numbers being impacted in future years as the zero-emission vehicle population grows.”
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