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Open Require VED Expensive Car Supplement threshold to be uprated with inflation

Created by Adam Martin
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Require the £40,000 Vehicle Excise Duty Expensive Car Supplement (ECS) threshold to be uprated annually in line with inflation and apply the uprated threshold to hybrid as well as electric vehicles. £30–32k in 2017 is very often £40k+ today, without being higher spec or more luxurious in real terms.

Tax on a vehicle is based on list price, not what you actually paid. Used car prices are irrelevant under VED rules. Hybrids get no ECS threshold relief, only pure EVs see the threshold raised to £50,000 from April 2026. Hybrids stay at £40,000. The ECS ignores inflation by design, unlike standard VED rates, which rise annually with inflation. The ECS threshold is fixed unless politically changed. The 2025 budget acknowledged £40,000 was outdated for EVs, and we believe we need to see the same logic applied consistently.

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