Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the level of equitability of applying the Expensive Car Supplement to second-hand vehicles purchased below the £50,000 threshold but originally registered above that threshold.

The Expensive Car Supplement (ECS) is an additional charge payable on top of Vehicle Excise Duty (VED) for cars with an original list price above £40,000, or £50,000 for zero emission vehicles. The supplement is charged at a flat rate of £440 per year and applies for five years, from the second to the sixth year following a car’s first registration.

The ECS is based on a vehicle’s list price as published by the manufacturer, rather than the price paid by any subsequent owners. This approach ensures the system is clear and objective, and that vehicles which were higher value at the point of registration are treated consistently over their initial lifecycle.