Older drivers and pensioners above the age of 70 are among those to be slapped with a new £440 car tax bill in 2026. Drivers buying expensive brand-new cars with a list price above £40,000 (£50,000 for EVs) must pay an additional tax known as the Expensive Car Supplement.
This is an annual fee which applies for five years after purchase, with costs increasing from £425 to £440 per annum back in April this year.
Older drivers are among those affected because there are no age exemptions, with everyone treated the same. The ECS fee is a surcharge applied strictly based on the vehicle’s original list price and is completely independent of the driver’s demographic.
Age UK said: “The list price is the price of a vehicle before it’s registered for the first time, and excludes any discounts. If the list price of your vehicle was more than £40,000, then you’ll have to pay an extra £440. This extra cost applies for 5 years, starting from the second time the vehicle is taxed.”
ECS fees follow the vehicle, not the buyer. This means that pensioners who purchase high-end second-hand vehicles could also be caught out. The new owner will be liable for the remainder of the 5-year ECS tax burden, adding hundreds to bills every year.
However, some pensioners will be exempt from paying the ECS fee. Those in receipt of mobility allowances, such as the higher rate of Disability Living Allowance (DLA) or Personal Independence Payment (PIP) may be able to secure a VED exemption.
Road users receiving the standard rate mobility component might be able to get a 505 reduction in massive help to cash-strapped road users. The British Vehicle and Rental Leasing Association (BVRLA) previously said “The standard rate of VED from the second year onwards will increase from £195 to £200 from 1 April 2026 until 31 March 2027.
“The Expensive Car Supplement is on top of the standard rate and was £425 in 2025, rising to £440 from 1 April 2026 to 31 March 2027.”