Some 59 vehicles from 24 manufacturers including Ford, BMW and Mercedes will face a £5,690 first-year tax from April 1 as the Government increases VED rates for high-emission cars

A total of 59 models from 24 manufacturers, including well-known brands such as Ford, BMW and Mercedes, will be hit with a £5,690 levy from April 1.

The hike comes after major changes to Vehicle Excise Duty (VED) rates brought in last year, which saw certain vehicles slapped with a £2,745 increase. The Government increased first-year VED charges for petrol and diesel cars from April 2025. These fees are paid by purchasers of brand-new vehicles before dropping to the standard rate afterwards.

The rises have been rolled out through a banded system, with the top brackets seeing fees nearly double compared with 2024 figures. Cars producing more than 255g/km of CO2 took the biggest hit from the £2,745 jump, affecting some of Britain’s most common vehicles.

First-year charges rose to £5,490, with a further increase to £5,690 expected from next month. Leading manufacturers including Ford and Toyota will see certain models affected by these alterations.

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BMW, Mercedes and Audi lineups will also experience the consequences. Premium vehicles will face the steepest penalties from these modifications, reports the Liverpool Echo.

Models from Porsche, Lotus, Lamborghini and McLaren are among those subject to the new fee. Chancellor Rachel Reeves announced the measure as a way of encouraging drivers to invest in electric vehicle ownership and ultimately eliminate ‘higher polluting’ vehicles and EVs.

The first year’s tax burden is determined by a vehicle’s carbon dioxide emissions. Currently, drivers of electric vehicles (EVs) are exempt from Vehicle Excise Duty (VED), whilst cars emitting between 111g and 150g/km of CO2 face a £220 charge.

Vehicles with emissions exceeding 255g/km are hit with a hefty first-year fee of £5,490, a figure that’s set to rise even further. Changes implemented last April meant EV buyers paid just £10 for their first year’s VED, a rate which has remained steady.

In contrast, drivers of petrol, diesel, and hybrid vehicles are bracing themselves for a significant increase as these charges are set to double.

A Treasury spokesperson told Car Dealer Magazine that from April 2025, buying new vehicles such as a Ford Puma could see the first-year VED cost jump from £220 to £440. For high-end models like a Range Rover, the initial year’s duty would rocket from £2,745 to a staggering £5,490 – with a subsequent rise to £5,690 expected.

These charges are gathered at the point of registration and fluctuate according to emission levels. The papers outlined forthcoming adjustments: “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.”

After the initial year, motors will face the standard levy – estimated at £200 (presently £195). A comprehensive breakdown of new models producing over 255 g/km has been published:

  1. Lamborghini Urus 4.0 V8 BiTurbo
  2. BMW X6 M 4.4 V8
  3. BMW M8 4.4 V8
  4. Land Rover Defender 110 5.0 P425 V8
  5. Ferrari Purosangue 6.5 V12
  6. Rolls-Royce Ghost 6.75 V12
  7. Mercedes-Benz G63
  8. Porsche 718 Cayman 4.0 GT4
  9. Maserati Levante 3.8 V8
  10. Mercedes-Benz GLS63h
  11. Audi R8 5.2 FSI V10
  12. Porsche Cayenne 4.0T V8
  13. Audi SQ8 4.0 TFSI V8
  14. Toyota Land Cruiser 2.8D
  15. Ford Ranger 3.0 EcoBlue
  16. Audi S8 4.0 TFSI V8
  17. Audi RS7 4.0 TFSI V8
  18. Jeep Wrangler 2.0 GME
  19. Mercedes-Benz GLE63
  20. Ford Ranger 2.0 TD EcoBlue
  21. Aston Martin DBX 4.0 V8
  22. Land Rover Defender 90 5.0 P425 V8
  23. Range Rover 4.4 P615 V8
  24. Audi RSQ8 4.0 TFSI V8
  25. Mercedes-Benz SL55
  26. Jaguar F-Pace 5.0 P575 V8
  27. Aston Martin Vantage 4.0 V8
  28. Toyota Hilux 2.8D
  29. INEOS Grenadier 3.0P
  30. Mercedes-Benz AMG GT 4.0 V8
  31. Porsche Macan 2.9T V6
  32. Lamborghini Huracan 5.2 V10
  33. Alfa Romeo Stelvio 2.9 V6 Bi-Turbo
  34. Ford Mustang 5.0 V8
  35. Lotus Emira 3.5 V6
  36. Mercedes-Benz GLC63
  37. Bentley Bentayga 4.0 V8
  38. Ford Ranger 3.0 V6
  39. BMW Alpina XB7 4.4 V8
  40. Audi SQ7 4.0 TFSI V8
  41. Aston Martin DB12 4.0 V8
  42. BMW X7 M 4.4 V8
  43. Rolls-Royce Cullinan 6.75 V12
  44. Lamborghini Revuelto 6.5 V12
  45. Volkswagen Amarok 3.0 TDI
  46. Ferrari Roma 3.8T V8
  47. Chevrolet Corvette Stingray 6.2 V8
  48. Range Rover 4.4 P530 V8
  49. Maserati MC20 3.0 V6
  50. Mercedes-Benz G400D
  51. Maserati Levante 3.0 V6
  52. Bentley Flying Spur 4.0 V8
  53. Bentley Continental 4.0 V8
  54. BMW X5 M 4.4 V8
  55. Audi RS6 4.0 TFSI V8
  56. Porsche 911 3.7T 992 Turbo
  57. Bentley Continental 6.0 W12
  58. Range Rover Sport 4.4P V8
  59. McLaren GT 4.0T V8

Motors priced above £40,000 face the VED premium vehicle tax supplement

Cars with a new purchase price exceeding £40,000 (including any added features) will attract an additional annual payment of £425 (rising from £410) on top of regular yearly VED motor tax costs, payable from years one to six of ownership.

Motorists who’ve splashed out more than £40,000 on a new car (including extras) will encounter an extra £425 levy throughout a five-year stretch, beginning when the vehicle is taxed for its second year. Once your motor hits its sixth year, you’ll have forked out an additional £2,125 in taxation.

From April, the threshold for the so-called “luxury car tax” (that £425 surcharge) will increase to £50,000 for electric vehicles, whilst petrol and diesel cars will remain at the £40,000 threshold.

If you’re driving an older vehicle registered before March 2001, your fee is worked out using VED engine capacity bands instead of CO2 emissions.

New mileage levy for electric and hybrid vehicles

From April 2028, electric vehicles will face a new ‘mileage levy’ designed to compensate for the lost fuel duty revenue from these cars. Starting in April 2028, motorists will pay the equivalent of 3p per mile for battery electric vehicles and £0.015p per mile for plug-in hybrid vehicles.

The Chancellor has stated this will help fund road maintenance. This charge will increase annually in line with the Consumer Price Index.

At present, no system has been outlined for how the policy will be implemented or how drivers will need to pay. It’s projected to add approximately £300 for every 10,000 miles driven in an electric vehicle.

Expensive car supplement raised for EVs

Launched in 2017, the Expensive Car Supplement imposes an extra £425 each year for five years following the first tax payment on new cars costing more than £40,000. However, the Budget has lifted this limit to £50,000 for electric vehicles, meaning buyers of EVs beneath this price won’t face the Expensive Car Supplement.

Vehicles over 40 years old

The 40-year classic car tax rule remains the same. If your vehicle was made over four decades ago, you’ll still be classified under the ‘historic vehicle’ category and won’t have to pay any VED.

Similarly, road tax exemptions for disabled drivers remain unchanged. If you’re eligible, you’ll continue to be completely exempt from these increases.

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