59 Popular Cars Hit with £2,500 Tax Hike from April – See the Full List

Starting April 1, 2025, car owners in the UK will face a significant rise in Vehicle Excise Duty (VED), with some popular models seeing an increase of up to £2,500 in their first-year tax. The government’s latest move targets high-emission vehicles as part of its strategy to promote cleaner transportation and encourage the transition to electric vehicles (EVs).

What’s Changing?

Under the revised VED structure, cars with higher carbon dioxide (CO₂) emissions will be taxed at significantly higher rates in their first year of registration. The changes include:

• High-emission vehicles (over 255g/km of CO₂): First-year tax will increase from £2,745 to £5,490, nearly doubling the current rate.
• Luxury car supplement: Vehicles priced above £40,000 will see an annual supplement rise from £410 to £425, applicable from the second to the sixth year of ownership.
• Diesel vehicles: Owners will face an average VED increase of £1,114.
• Petrol vehicles: The average increase will be around £503.
• Hybrid vehicles: Depending on the model, tax hikes will range from £135 to £327.

For official details on the VED changes, visit the UK Government website.

Which Cars Are Affected?

The increase in VED is set to impact 59 popular car models, particularly those with high emissions. Some notable examples include:

• Volkswagen Polo GTI: First-year tax rising from £270 to £540.
• Audi RS3: First-year VED jumping to £3,300.
• Tesla Model Y: Although a zero-emission vehicle, it will still incur a £10 first-year VED and a £410 annual luxury car tax for five years due to its price exceeding £40,000.

Full List of Affected Vehicles:

Alfa Romeo:

• Stelvio 2.9 V6 Bi-Turbo

Audi:

• R8 5.2 FSI V10
• RS6 4.0 TFSI V8
• RS7 4.0 TFSI V8
• RSQ8 4.0 TFSI V8
• S8 4.0 TFSI V8
• SQ7 4.0 TFSI V8
• SQ8 4.0 TFSI V8

Aston Martin:

• DB12 4.0 V8
• DBX 4.0 V8
• Vantage 4.0 V8

Bentley:

• Bentayga 4.0 V8
• Continental 4.0 V8
• Continental 6.0 W12
• Flying Spur 4.0 V8

BMW:

• Alpina XB7 4.4 V8
• M8 4.4 V8
• X5 M 4.4 V8
• X6 M 4.4 V8
• X7 M 4.4 V8

Chevrolet:

• Corvette Stingray 6.2 V8

Ferrari:

• Purosangue 6.5 V12
• Roma 3.8T V8

Ford:

• Mustang 5.0 V8
• Ranger 2.0 TD EcoBlue
• Ranger 3.0 EcoBlue
• Ranger 3.0 V6

INEOS:

• Grenadier 3.0P

Jaguar:

• F-Pace 5.0 V8

Jeep:

• Wrangler 2.0 GME

Lamborghini:

• Huracan 5.2 V10
• Urus 4.0 V8
• Revuelto 6.5 V12

Land Rover:

• Defender 90 5.0 V8
• Defender 110 5.0 V8

Lotus:

• Emira 3.5 V6

Maserati:

• Levante 3.8 V8
• Quattroporte 3.8 V8

Mercedes-Benz:

• AMG G63 4.0 V8
• AMG GT 4-Door 4.0 V8
• AMG SL 4.0 V8

Nissan:

• GT-R 3.8 V6

Porsche:

• 911 Turbo S 3.8 V6
• Cayenne Turbo GT 4.0 V8

Rolls-Royce:

• Cullinan 6.75 V12
• Ghost 6.75 V12
• Phantom 6.75 V12

Toyota:

• Land Cruiser 2.8 D-4D

Volkswagen:

• Golf R 2.0 TSI
• Touareg 3.0 TDI V6

For the latest tax bands and their impact on other models, check the DVLA’s tax rates page.

Why the Increase?

The UK government is pushing for greener alternatives, and these tax changes aim to dissuade buyers from choosing high-emission vehicles. The increased rates also align with the government’s 2030 ban on new petrol and diesel car sales.

These tax hikes are expected to drive more consumers toward EVs, many of which qualify for lower or zero VED rates. You can learn more about EV incentives on the UK Department for Transport website.

How to Reduce Your Tax Liability?

1. Consider electric or low-emission cars: EVs and hybrid models generally attract lower tax rates.
2. Purchase cars below £40,000: This will help avoid the luxury vehicle supplement.
3. Check annual tax rates before buying: Use the official VED calculator to estimate costs.

Final Thoughts

The upcoming changes will significantly impact car buyers, especially those looking at high-performance or luxury vehicles. If you’re in the market for a new car, it’s crucial to factor in the new tax rates before making a purchase.

For further details on road tax policies, visit the official UK Government website.