Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether she has made an assessment of the potential merits of reforming the Expensive Car Supplement component of Vehicle Excise Duty for used vehicles to reflect a) vehicle depreciation and b) purchase price at the point of resale.

The Expensive Car Supplement (ECS) is a supplement to Vehicle Excise Duty (VED) payable by vehicle keepers for five years, from years two to six following a car's first registration.

The ECS rate is currently £425 per year, increasing to £440 from 1 April 2026 in line with RPI. The ECS currently applies to new cars with a list price of £40,000 or more. As announced at Budget 2025, the threshold will increase to £50,000 for zero-emissions cars only from 1 April 2026, as such vehicles tend to be more expensive.

The ECS was introduced so that those who can afford to access the most expensive cars make a fair contribution. The Government has no plans to change the scope of the ECS.