Key Takeaways
- New registration plates are issued twice a year in the UK: the 26 plate covers 1 March 2026 to 31 August 2026, and the 76 plate applies from 1 September 2026.
- Discounts on new cars during plate change periods range from 17% to 43% off the recommended retail price, with electric vehicles currently producing the largest reductions.
- The benefit in kind rate for pure electric company cars rose to 4% for the 2026/27 tax year and will increase by 1% each April until 2028/29, though electric cars remain significantly more tax-efficient than petrol or diesel alternatives.
- The vehicle excise duty luxury supplement threshold was raised to £50,000 from April 2026, meaning more electric models now avoid the additional £425 annual charge.
- Fuel duty remains cut by 5 pence per litre until the end of August 2026, after which it will be phased back to pre-2022 levels by February 2027.
March and September are the two moments in the UK car calendar when new registration plates are released, and they consistently produce some of the most significant discounts available on new cars. If you are considering a new car lease, timing your search around these plate change dates can make a material difference to what you pay.
This article explains how the plate system works, what kind of savings are on offer for the 26 plate and 76 plate periods in 2026, and what the relevant tax and duty changes mean for your decision.
How the UK plate change system works
The Driver and Vehicle Licensing Agency (DVLA) issues new registration identifiers twice a year. Every vehicle first registered between 1 March 2026 and 31 August 2026 carries the “26” plate. From 1 September 2026, those vehicles switch to the “76” plate.
This twice-yearly cycle matters for anyone leasing or buying a new car because manufacturers and dealers use the plate change periods to clear outgoing stock and hit volume targets. The result is that discounts off the Recommended Retail Price (RRP) tend to be deeper around March and September than at other points in the year. That pattern holds whether you are looking at petrol, diesel, hybrid, or electric models.
What the discounts actually look like
For the 26 plate period, discounts on new cars range from 17% to 43% off RRP, depending on the model and manufacturer. Electric vehicles are currently producing the largest reductions in percentage terms.
The Honda e:Ny1 is available at £18,750 off its RRP, a saving of 43%. The Vauxhall Mokka Electric is discounted by £14,935, which represents 42.7% off list price. At the premium end of the market, the BMW i5 has been reduced from £77,595 to £59,990, a saving of £17,605.
These are not small adjustments. A 43% reduction on a new electric car changes the monthly payment calculation significantly, whether you are leasing personally or through a business.
These discounts move with each plate period, and the monthly lease price moves with them. For the current figure on any of these models, see the live monthly prices on our latest special offers.
It is worth noting that the size of the discount does not automatically mean the car is right for your situation. A heavily discounted model that does not suit your mileage, charging habits, or tax position is still the wrong choice. Use the discount figures as a starting point, not the whole picture.
Tax changes affecting new plate deals in 2026
Two significant tax changes came into effect in 2026 that are relevant if you are considering a company car or an electric vehicle.
Benefit in kind rates for electric company cars
Benefit in kind (BIK) is the tax paid by employees who receive a company car as part of their remuneration. The taxable value is calculated as a percentage of the car’s P11D value (its list price including options, before any discount).
For the 2026/27 tax year, starting 6 April 2026, the BIK rate for pure electric cars rose from 3% to 4%. It will increase by a further 1% each year: 5% in 2027/28, and 6% in 2028/29.
To put that in concrete terms: for a basic rate taxpayer (20%) driving a £35,000 electric company car, the annual BIK tax bill increases from £210 to £280, an additional £70 per year. For a higher rate taxpayer (40%), the increase is £140 per year.
These are still low rates compared to petrol and diesel company cars, where BIK rates typically sit between 25% and 37% depending on CO2 emissions. Electric cars remain the most tax-efficient company car option by a considerable margin. But the direction of travel is upward, and it is worth factoring the 2027/28 and 2028/29 rates into any three-year lease decision you make now.
Employers also pay Class 1A National Insurance contributions of 15% on the value of taxable company car benefits. This is reported via the P11D and P11D(b) process, with submissions due by 6 July after the end of each tax year.
For plug-in hybrid vehicles, BIK rates for 2026/27 range from 7% to 16% depending on the car’s WLTP electric-only range. From 6 April 2028, plug-in hybrid rates will reset to align with conventional internal combustion engine vehicles, which will significantly increase the tax cost of running a hybrid company car beyond that date.
Vehicle Excise Duty
Vehicle Excise Duty (VED), commonly called road tax, increased from £195 to £200 per year from 1 April 2026 for cars registered after April 2017. This standard annual rate applies to petrol, diesel, hybrid, and electric vehicles beyond their first year of registration.
One useful change for electric car buyers: the luxury supplement threshold, which adds £425 per year for cars with a list price above a certain level, was lifted to £50,000 from April 2026. Electric cars priced under £50,000 now avoid this additional charge. Given that several popular electric models sit in the £35,000 to £49,000 range, this is a meaningful saving over a three-year lease.
Fuel duty
Fuel duty remains cut by 5 pence per litre until the end of August 2026. From September 2026, that reduction will be gradually phased out, with a full return to pre-2022 duty levels expected by February 2027. If you drive a petrol or diesel car, this is worth bearing in mind when comparing running costs between now and the 76 plate period.
The tax, benefit in kind and duty figures in this article are illustrative and subject to change. This is not tax advice, so please confirm your own position with HMRC or a qualified accountant before making a decision.
Leasing an electric car on a new plate deal: what to weigh up
The combination of large manufacturer discounts and still-low BIK rates makes the 26 plate period a practical window for electric car leasing, particularly for company car drivers. A 43% discount off RRP reduces the P11D value used to calculate your BIK tax, which compounds the saving.
For personal car leasing (personal contract hire, or PCH), the monthly payment is directly influenced by the vehicle’s list price and the residual value at end of contract. A deeper manufacturer discount typically translates into a lower monthly payment, though the exact figure depends on the leasing company’s terms, your mileage limit, and the initial payment you choose.
VAT at 20% applies to lease payments. Business users who are VAT-registered can reclaim 50% of the VAT on a car used for mixed business and personal use, or 100% if the car is exclusively for business.
Salary sacrifice schemes, where you lease a car through your employer and pay from your gross salary before tax and National Insurance, remain available and can be tax-efficient for electric cars given the low BIK rates. The value of the saving depends on your income tax bracket and the specific BIK rate for the car you choose. It is worth modelling the numbers carefully before committing, as the benefit reduces as BIK rates rise each April.
What to do next
If you are looking at new plate deals for March or September 2026, the starting point is to identify which models carry the largest discounts relative to your needs, then work through the tax position if a company car or salary sacrifice arrangement applies to you.
Browse the current 26-plate electric car lease deals on the deals pages to see live monthly payments, or use the leasing calculator to model different initial payment and mileage combinations. If you have questions about BIK, salary sacrifice, or fleet arrangements, the team can walk through the numbers with you before you commit to a contract.
Frequently asked questions
The 26 plate applies to all vehicles first registered between 1 March 2026 and 31 August 2026. The 76 plate applies to vehicles registered from 1 September 2026 onwards. Both are part of the DVLA’s twice-yearly registration system.
Manufacturers and dealers use the plate change periods to clear stock and hit volume targets. This typically produces deeper discounts off RRP than at other times of year, particularly for outgoing or slow-moving models.
Discounts vary by model. For the 26 plate period, savings range from 17% to 43% off RRP. The Honda e:Ny1 is discounted by £18,750 (43% off) and the Vauxhall Mokka Electric by £14,935 (42.7% off).
The benefit in kind rate for pure electric company cars is 4% for the 2026/27 tax year (from 6 April 2026). It rises to 5% in 2027/28 and 6% in 2028/29.
Yes. Electric cars pay Vehicle Excise Duty from their second year of registration at the standard annual rate of £200. Cars with a list price above £50,000 also pay a luxury supplement of £425 per year, but this threshold was lifted to £50,000 from April 2026, meaning more electric models now avoid it.
It can be, particularly for higher rate taxpayers, because the low BIK rate on electric cars makes the taxable benefit relatively small. However, the saving reduces as BIK rates increase each year. It is worth calculating your specific position based on the car’s P11D value, your tax bracket, and the contract length before committing.
Ready to find your new plate deal?
Browse live 26-plate lease deals or speak to the team about benefit in kind, salary sacrifice, and fleet arrangements before you commit to a contract.
