Motorists with vehicles emitting exorbitant levels of CO2 will be hardest hit by new car tax hikes next month. From April 1, the government is doubling the Vehicle Excise Duty (VED) for some new petrol, diesel and hybrid cars.
The eye-watering hike was announced by Chancellor Rachel Reeves during the Autumn Budget last year and is meant to encourage people to move away from petrol-guzzlers to zero-emission cars. The VED increase will hike the tax differential between zero-emission cars and those powered by internal combustion engines.
The move aligns with the Government’s environmental goals of reducing carbon emissions and promoting sustainable transportation. Buyers of new petrol, diesel, and hybrid vehicles can expect higher upfront costs due to increased first-year VED rates.
However, electric car owners will only be charged a nominal VED rate, making these vehicles a more tax-efficient option in the long term. Key changes to VED rates include:
High CO2 emitting vehicles: The first-year VED for new cars emitting over 255g/km of CO2 will increase from £2,745 to £5,490.
Moderate CO2 emitting vehicles: Vehicles emitting between 76g/km and 150g/km will see a steep rise in their first-year VED. For instance, a Ford Puma’s rate will climb from £220 to £440.
Low CO2 emitting vehicles: Cars emitting between 1-50g/km will see their VED rise from £10 to £110. Those emitting 51-75g/km will experience an increase from £30 to £130.
Electric Vehicles (EVs): EVs were previously exempt but now they’ll be subject to a nominal first-year VED of £10 starting in April 2025.
The 59 petrol and diesel models expected to be hardest hit by the tax rise are:
Alfa Romeo, Stelvio 2.9 V6 Bi-Turbo
Audi, R8 5.2 FSI V10
Audi, RS6 4.0 TFSI V8
Audi, RS7 4.0 TFSI V8
Audi, RSQ8 4.0 TFSI V8
Audi, S8 4.0 TFSI V8
Audi, SQ7 4.0 TFSI V8
Audi, SQ8 4.0 TFSI V8
Aston Martin, DB12 4.0 V8
Aston Martin, DBX 4.0 V8
Aston Martin, Vantage 4.0 V8
Bentley, Bentayga 4.0 V8
Bentley, Continental 4.0 V8
Bentley, Continental 6.0 W12
Bentley, Flying Spur 4.0 V8
BMW, Alpina XB7 4.4 V8
BMW, M8 4.4 V8
BMW, X5 M 4.4 V8
BMW, X6 M 4.4 V8
BMW, X7 M 4.4 V8
Chevrolet, Corvette Stingray 6.2 V8
Ferrari, Purosangue 6.5 V12
Ferrari, Roma 3.8T V8
Ford, Mustang 5.0 V8
Ford, Ranger 2.0 TD EcoBlue
Ford, Ranger 3.0 EcoBlue
Ford, Ranger 3.0 V6
INEOS, Grenadier 3.0P
Jaguar, F-Pace 5.0 P575 V8
Jeep, Wrangler 2.0 GME
Lamborghini, Huracan 5.2 V10
Lamborghini, Urus 4.0 V8 BiTurbo
Lamborghini, Revuelto 6.5 V12
Land Rover, Defender 90 5.0 P425 V8
Land Rover, Defender 110 5.0 P425 V8
Lotus, Emira 3.5 V6
Maserati, Levante 3.0 V6
Maserati, Levante 3.8 V8
Maserati, MC20 3.0 V6
McLaren, GT 4.0T V8
Mercedes-Benz, AMG GT 4.0 V8
Mercedes-Benz, G400D
Mercedes-Benz, G63
Mercedes-Benz, GLC63
Mercedes-Benz, GLE63
Mercedes-Benz, GLS63
Mercedes-Benz, SL55
Porsche, 718 Cayman 4.0 GT4
Porsche, 911 3.7T 992 Turbo
Porsche, Cayenne 4.0T V8
Porsche, Macan 2.9T V6
Range Rover, 4.4 P530 V8
Range Rover, 4.4 P615 V8
Range Rover, Sport 4.4P V8
Rolls-Royce, Cullinan 6.75 V12
Rolls-Royce, Ghost 6.75 V12
Toyota, Hilux 2.8D
Toyota, Land Cruiser 2.8D
Volkswagen, Amarok 3.0 TDI