Models include those from Ford, BMW and more
Models include those from Ford, BMW and more
Some 59 vehicles from 24 different manufacturers, including household names like Ford, BMW and Mercedes, will face a £5,690 tax from April 1. The rise follows substantial changes to Vehicle Excise Duty (VED) rates introduced last year, which saw certain models subjected to an eye-watering £2,745 increase.
The Government opted to significantly raise first-year VED fees for petrol and diesel vehicles from April 2025 onwards. These substantial sums are paid by buyers of brand-new cars before reverting to the standard rate thereafter.
The increases have been implemented through a tiered structure, with the highest bands seeing charges roughly double compared to 2024 levels. Vehicles emitting over 255 g/km of CO2 bore the brunt of the £2,745 hike, affecting some of the most popular cars on UK road.
First-year fees climbed to £5,490, with a further hike to £5,690 anticipated from next month. Major manufacturers such as Ford and Toyota will see select models caught up in these changes.
BMW, Mercedes and Audi ranges will also feel the impact. High-end models will bear the heaviest consequences from these changes.
Vehicles from Porsche, Lotus, Lamborghini and McLaren number among those facing the new charge. Chancellor Rachel Reeves unveiled the policy as a means of encouraging motorists towards electric vehicle purchases and establishing a clearer distinction between ‘higher polluting’ cars and EVs.
The initial year’s tax burden is calculated based on a vehicle’s carbon dioxide emissions. At present, electric vehicle (EV) drivers enjoy VED exemption, while cars emitting between 111g and 150g/km of CO2 are subject to a £220 charge.
Vehicles exceeding 255g/km face an even heftier first-year levy of £5,490, and this figure is expected to climb further. Reforms introduced last April meant EV purchasers paid merely £10 for their first year’s VED, a figure which has recently remained the same.
By comparison, motorists with petrol, diesel, and hybrid vehicles are preparing for a substantial hike as these charges are scheduled to double.
A Treasury spokesman told Car Dealer Magazine that from April 2025, purchasing new vehicles such as a Ford Puma could see the first-year VED cost surge from £220 to £440. For premium models like a Range Rover, the initial year’s duty would soar from £2,745 to an eye-watering £5,490 – with a subsequent increase to £5,690 anticipated.
Chancellor Rachel Reeves said in her Budget speech: “To help drive the transition to electric vehicles the government is strengthening incentives to purchase EVs by widening the differentials in Vehicle Excise Duty First Year Rates between EVs and hybrids or internal combustion engine cars.”
Budget documentation confirms: “The government is also maintaining EV incentives in the Company Car Tax regime and extending 100% First Year Allowances for zero emission cars and EV charge points for a further year.”
The Budget papers provided further detail on vehicle taxation, explaining: “Vehicle Excise Duty first-year rates are paid for the first year of a car’s lifecycle, at the point of registration, and vary based on emissions.”
These fees are collected at registration and differ depending on emission outputs. The documentation set out upcoming changes: “From 1 April 2025, the Vehicle Excise Duty first-year rates will be changed to widen the difference between zero-emission, hybrid and internal combustion engine cars.”
Expected first year vehicle tax rates from April 1, 2026
- 0g/km – Remains at £10
- 1-50g/km – Rising from £110 to £115
- 51-75g/km – Rising from £130 to £135
- 76-90g/km – Rising from £270 to £280
- 91-100g/km – Rising from £350 to £365
- 101-110g/km – Rising from £390 to £405
- 111-130g/km – Rising from £440 to £455
- 131-150g/km – Rising from £540 to £560
- 151-170g/km – Rising from £1,360 to £1,410
- 171-190g/km – Rising from £2,190 to £2,270
- 191-225g/km – Rising from £3,300 to £3,420
- 226-255g/km – Rising from £4,680 to £4,850
- Over 255gkm – Rising from £5,490 to £5,690
Following the first year, vehicles will be subject to the standard rate – projected at £200 (currently £195). A full list of new models emitting over 255 g/km has been released:
- Lamborghini Urus 4.0 V8 BiTurbo
- BMW X6 M 4.4 V8
- BMW M8 4.4 V8
- Land Rover Defender 110 5.0 P425 V8
- Ferrari Purosangue 6.5 V12
- Rolls-Royce Ghost 6.75 V12
- Mercedes-Benz G63
- Porsche 718 Cayman 4.0 GT4
- Maserati Levante 3.8 V8
- Mercedes-Benz GLS63h
- Audi R8 5.2 FSI V10
- Porsche Cayenne 4.0T V8
- Audi SQ8 4.0 TFSI V8
- Toyota Land Cruiser 2.8D
- Ford Ranger 3.0 EcoBlue
- Audi S8 4.0 TFSI V8
- Audi RS7 4.0 TFSI V8
- Jeep Wrangler 2.0 GME
- Mercedes-Benz GLE63
- Ford Ranger 2.0 TD EcoBlue
- Aston Martin DBX 4.0 V8
- Land Rover Defender 90 5.0 P425 V8
- Range Rover 4.4 P615 V8
- Audi RSQ8 4.0 TFSI V8
- Mercedes-Benz SL55
- Jaguar F-Pace 5.0 P575 V8
- Aston Martin Vantage 4.0 V8
- Toyota Hilux 2.8D
- INEOS Grenadier 3.0P
- Mercedes-Benz AMG GT 4.0 V8
- Porsche Macan 2.9T V6
- Lamborghini Huracan 5.2 V10
- Alfa Romeo Stelvio 2.9 V6 Bi-Turbo
- Ford Mustang 5.0 V8
- Lotus Emira 3.5 V6
- Mercedes-Benz GLC63
- Bentley Bentayga 4.0 V8
- Ford Ranger 3.0 V6
- BMW Alpina XB7 4.4 V8
- Audi SQ7 4.0 TFSI V8
- Aston Martin DB12 4.0 V8
- BMW X7 M 4.4 V8
- Rolls-Royce Cullinan 6.75 V12
- Lamborghini Revuelto 6.5 V12
- Volkswagen Amarok 3.0 TDI
- Ferrari Roma 3.8T V8
- Chevrolet Corvette Stingray 6.2 V8
- Range Rover 4.4 P530 V8
- Maserati MC20 3.0 V6
- Mercedes-Benz G400D
- Maserati Levante 3.0 V6
- Bentley Flying Spur 4.0 V8
- Bentley Continental 4.0 V8
- BMW X5 M 4.4 V8
- Audi RS6 4.0 TFSI V8
- Porsche 911 3.7T 992 Turbo
- Bentley Continental 6.0 W12
- Range Rover Sport 4.4P V8
- McLaren GT 4.0T V8
Vehicles costing more than £40,000 are liable for the VED luxury car tax surcharge
Cars valued at more than £40,000 when purchased new (including any additional extras) will incur an extra annual charge of £425 (up from £410) on top of the standard yearly VED car tax fees, applicable from years one through to six of ownership.
Those who have spent upwards of £40,000 on a new vehicle (extras included) will face an additional £425 fee across a five-year period, commencing when the car is taxed for its second year. By the time your vehicle reaches its sixth year, you’ll have paid an extra £2,125 in tax.
From April, the threshold for the so-called “luxury car tax” (that £425 premium) will rise to £50,000 for electric vehicles, while petrol and diesel cars will continue to be set at the £40,000 mark.
For those behind the wheel of an older model registered before March 2001, your charge is calculated using VED engine capacity bands rather than CO2 emissions.
New mileage tax for electric and hybrid vehicles
From April 2028, electric vehicles will be subject to a new ‘mileage tax’ to bridge the gap created by the absence of fuel duty payments for these vehicles. From April 2028, drivers will be charged an equivalent of 3p per mile for battery electric cars and £0.015p per mile for plug-in hybrid cars.
The Chancellor says that this will go towards helping road maintenance. This fee will rise each year in line with the Consumer Price Index.
Currently, no framework has been announced regarding how the policy will be enforced or how motorists will be required to pay. It’s estimated to add roughly £300 for every 10,000 miles travelled in an electric vehicle.
Expensive car supplement increased for EVs
Introduced in 2017, the Expensive Car Supplement adds an additional £425 annually for five years after the initial tax payment on new vehicles priced above £40,000. However, the Budget has increased this threshold to £50,000 for electric vehicles, which means purchasers of EVs below this price point won’t be liable for the Expensive Car Supplement.
Vehicles over 40 years old
The 40-year classic car tax rule remains unchanged. If your vehicle was manufactured more than four decades ago, you’ll still fall within the ‘historic vehicle’ category and pay nothing in VED.
Likewise, road tax exemptions for disabled motorists remain unaffected. If you qualify, you’ll continue to be fully exempt from these increases.
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