
What is the Vehicle Excise Duty Expensive Car Supplement?
The Vehicle Excise Duty Expensive Car Supplement is an additional vehicle tax charge applied to vehicles above certain price thresholds when they are first registered.
Currently, this applies to:
If your vehicle exceeds these thresholds, you’ll pay an additional £440 per year from years 2 to 6 of ownership.
If your vehicle falls below these thresholds at registration, you avoid this extra charge and simply pay the normal standard vehicle taxrate, similar to what many drivers are used to paying on older vehicles.
Why This is Good News for You
Following Peugeot’s pricing update from 5th May 2026, list prices across the 208, 2008, 3008 and 5008 ranges have been realigned across petrol, hybrid, plug-in hybrid and electric models.
This means:
Importantly, the DVLA uses the vehicle list price at registration, including factory-fitted options, to determine whether the supplement applies.
So even if your vehicle was ordered before the pricing update, if the revised list price falls below the threshold when it is registered, the additional tax charge may no longer apply.
There is no need to cancel or re-order your existing vehicle to benefit from this change.
One of the biggest highlights is that the Peugeot E-3008 and Peugeot E-5008 ranges are now below the £50,000 electric vehicle threshold, including Dual Motor versions.
This means you can now enjoy Peugeot’s premium all-electric SUVs without paying the additional luxury vehicle tax premium.
At the same time:
With lower list prices, reduced vehicle tax costs, and exceptional new car offers available across the Peugeot range, there has never been a better time to upgrade your vehicle.
Whether you're considering the stylish Peugeot 208, the practical Peugeot 3008, or the all-electric Peugeot E-5008, our team at Gates Peugeot is here to help you find the right model for your lifestyle and budget.
Enquire today to discover how much you could save and explore our latest new car offers available across the Peugeot range.
Lower tax, lower running costs, and better long-term value - Peugeot’s latest Price Realignment makes upgrading to a new Peugeot an even smarter choice.