Drivers aged 70 and over are among those facing a new £440 car tax bill in 2026. The Expensive Car Supplement (ECS) applies to brand-new cars with a list price above £40,000 (£50,000 for EVs) and is charged annually for five years after purchase. The fee rose from £425 to £440 per year in April.
No age exemptions for the ECS fee
Older drivers are not automatically exempt from the £440 fees. The ECS is a surcharge based strictly on the vehicle's original list price and is completely independent of the driver's demographic.
Age UK, one of the biggest dedicated charities for older citizens, explained that there are no age concessions, with road users paying the £440 fee regardless.
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.”
Fee follows the vehicle, not the buyer
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.
Over the course of five years, the £440 annual tax fee will see road users paying a whopping £2,200 in additional costs.
Exemptions and standard rate changes
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.”
