The expensive-car supplement in 2026 to 2027
Updated 26 October 2026. Luxury car tax is the name drivers use for the expensive-car supplement on vehicle tax. For 2026 to 2027 it is an extra £440 a year. Electric cars use a higher list-price threshold, set out below.
The status of a particular car is a separate question. Use the car tax check for taxed, untaxed or SORN. This page does not take a payment.
When the extra rate applies
GOV.UK charges the extra £440 if either of these is true:
- A petrol, diesel or other non-electric car or motorhome with a list price of more than £40,000.
- An electric car or motorhome with a list price of more than £50,000. This also covers electric vehicles registered between 1 April 2025 and 31 March 2026.
You do not pay it when both of these are true: the vehicle is zero emission, and it was registered before 1 April 2025. A hybrid uses the £40,000 test, not the electric one.
How long it lasts, and what you pay
The extra rate runs for five years, from the second time the vehicle is taxed. It is not charged in the first year. On top of the £200 standard rate, a single 12-month payment is £640. Twelve monthly payments come to £672. A single six-month payment is £352. Those are the published totals, not a percentage added on afterwards.
What the list price includes
The list price is the published price before the vehicle is registered for the first time, before discounts. Factory options count. A discount agreed in the showroom does not pull the car under the line. If you are specifying a new car close to £40,000, or £50,000 for an electric car, ask the dealer for the list price that will be used for tax.
The supplement follows the car. Selling it, or importing it later, does not wipe the original list price. The electric car guide covers the registration-date rules, and the official table is on GOV.UK.