A whopping 59 cars from 24 brands, including popular manufacturers such as Ford, BMW and Mercedes, have been hit with a £2,745 car tax hike since in April 2025 - meaning anyone buying one of these cars is impacted. This comes on the back of significant changes in Vehicle Excise Duty (VED) rates announced in the Autumn Budget by Labour.
First-year VED fees for petrol and diesel models have been hiked this year. These are hefty fees paid by owners of brand-new vehicles before they switch to the standard rate. Fees rose on a sliding scale, with most of the higher tiers seeing fees double from their current 2024 rates.
Models producing over 255 g/km of CO2 were hit with the highest £2,745 increase, affecting some of the most popular vehicles on the road. This means common mid-market brands such as Ford and Toyota have some models affected.
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BMW, Mercedes and Audi models are also feeling the pinch. In addition, high-end vehicles will bear the brunt of the change.
Among those facing the new tax are some models of Porsche, Lotus, Lamborghini and McLaren, reports Lancs Live. Chancellor Rachel Reeves announced at the end of October that drivers of new petrol, diesel and hybrid vehicles would face higher first-year tax rates.
It was in first year road tax where the biggest changes were seen - in the top band of 255+g/km emissions it rose to £5,490 having previously been £2,475. In standard road tax rate, which is what you’ll pay annually to tax your car from the second year onwards, for all cars registered registered after 1 April 2017 it is £195 – petrol, diesel, hybrid and electric - t was previously £190 for petrol/diesel, with a £10 discount for hybrids, and free for electric cars.
The expensive car supplement is also increasing to £425 per year (previously £410), which you need to pay for the second to sixth year your car is on the road if it cost more than £40,000 new.
The move is designed to encourage consumers to buy electric vehicles and widen the gap between 'higher polluting' vehicles and EVs. The first-year tax figure is calculated based on the amount of carbon dioxide the vehicle produces.
Electric vehicles (EVs), which have been enjoying the perk of not paying Vehicle Excise Duty (VED), are set for a change as owners will face a nominal £10 charge for their first year's VED from April—a decision that has now been put on ice. In contrast, drivers of petrol, diesel and hybrid cars are gearing up for a hefty increase, with current rates expected to double by 2025, according to Lancs Live.
Speaking to Car Dealer Magazine, it was revealed that this could mean a new Ford Puma might see its first-year VED jump from £220 to £440, while those splashing out on a luxury Range Rover could be hit with a rise from £2,745 to an eye-watering £5,490. Chancellor Rachel Reeves, in her Budget speech, informed MPs: "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."
She further stated that the government will continue to support EVs by "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 document illuminated the forthcoming alterations, stating: "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."
The statement further disclosed: "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."
Full list of new models emitting more than 255 g/km has been made available.
- Audi RS6 4.0 TFSI V8
- Audi S8 4.0 TFSI V8
- McLaren GT 4.0T V8
- Audi R8 5.2 FSI V10
- Lamborghini Huracan 5.2 V10
- Chevrolet Corvette Stingray 6.2 V8
- Volkswagen Amarok 3.0 TDI
- Aston Martin DBX 4.0 V8
- Ferrari Roma 3.8T V8
- Audi SQ7 4.0 TFSI V8
- Range Rover Sport 4.4P V8
- Jaguar F-Pace 5.0 P575 V8
- Aston Martin DB12 4.0 V8
- Porsche 911 3.7T 992 Turbo
- Jeep Wrangler 2.0 GME
- Ford Ranger 2.0 TD EcoBlue
- Audi RSQ8 4.0 TFSI V8
- Lotus Emira 3.5 V6
- Bentley Continental 4.0 V8
- Audi SQ8 4.0 TFSI V8
- Aston Martin Vantage 4.0 V8
- Toyota Hilux 2.8D
- Porsche Macan 2.9T V6
- Mercedes-Benz SL55
- Range Rover 4.4 P530 V8
- Mercedes-Benz AMG GT 4.0 V8
- Porsche 718 Cayman 4.0 GT4
- Lamborghini Urus 4.0 V8 BiTurbo
- Audi RS7 4.0 TFSI V8
- Ford Mustang 5.0 V8
- Toyota Land Cruiser 2.8D
- Bentley Continental 6.0 W12
- Mercedes-Benz GLC63
- Ford Ranger 3.0 V6
- INEOS Grenadier 3.0P
- Range Rover 4.4 P615 V8
- Land Rover Defender 90 5.0 P425 V8
- Rolls-Royce Ghost 6.75 V12
- Ford Ranger 3.0 EcoBlue
- Mercedes-Benz G63
- Ferrari Purosangue 6.5 V12
- Rolls-Royce Cullinan 6.75 V12
- Alfa Romeo Stelvio 2.9 V6 Bi-Turbo
- Mercedes-Benz GLE63
- Maserati Levante 3.0 V6
- Porsche Cayenne 4.0T V8
- BMW M8 4.4 V8
- Maserati MC20 3.0 V6
- Land Rover Defender 110 5.0 P425 V8
- Mercedes-Benz G400D
- Lamborghini Revuelto 6.5 V12
- Bentley Bentayga 4.0 V8
- BMW X7 M 4.4 V8
- BMW X6 M 4.4 V8
- BMW Alpina XB7 4.4 V8
- Bentley Flying Spur 4.0 V8
- Maserati Levante 3.8 V8
- BMW X5 M 4.4 V8
- Mercedes-Benz GLS63h
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