Some 59 vehicles from 24 different manufacturers will face a £5,690 first-year tax charge from April 1, 2026, following substantial changes to Vehicle Excise Duty rates for high-emission petrol and diesel cars
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 increase follows major changes to Vehicle Excise Duty (VED) rates brought in last year, which saw certain models hit with an eye-watering £2,745 rise.
The Government chose to dramatically hike first-year VED charges for petrol and diesel vehicles from April 2025 onwards. These hefty sums are paid by purchasers of brand-new cars before dropping to the standard rate afterwards.
The increases have been rolled out through a tiered system, with the highest bands witnessing charges roughly double compared to 2024 levels.
Vehicles producing over 255 g/km of CO2 took the brunt of the £2,745 jump, impacting some of the most popular cars on British roads. First-year charges rose to £5,490, with a further increase to £5,690 expected from next month. Leading manufacturers such as Ford and Toyota will witness selected models swept up in these alterations.
BMW, Mercedes and Audi ranges will also experience the consequences. Premium models will shoulder the heaviest burden from these modifications, reports the Liverpool Echo.
Vehicles from Porsche, Lotus, Lamborghini and McLaren feature among those confronting the new levy. Chancellor Rachel Reeves announced the policy as a way of pushing motorists towards electric vehicle purchases and creating a clearer divide between ‘higher polluting’ cars and EVs.
The first year’s tax liability is determined according to a vehicle’s carbon dioxide emissions. Currently, electric vehicle (EV) motorists benefit from VED exemption, whilst cars producing between 111g and 150g/km of CO2 face a £220 levy.
Motors surpassing 255g/km encounter an even steeper first-year charge of £5,490, and this amount is anticipated to rise further. Changes implemented last April meant EV buyers paid just £10 for their inaugural year’s VED, a sum which has lately stayed unchanged.
In contrast, drivers with petrol, diesel, and hybrid cars are bracing for a considerable increase as these fees are set to double. A Treasury spokesperson told Car Dealer Magazine that from April 2025, buying new motors such as a Ford Puma could witness the first-year VED expense jump from £220 to £440. For luxury variants like a Range Rover, the initial year’s duty would rocket from £2,745 to a staggering £5,490 – with a further rise to £5,690 expected.
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.”
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
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 offered additional 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 charges are gathered at registration and differ according to emission levels. The documentation outlined forthcoming modifications: “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.”
From April 2028, motorists will be charged the equivalent of 3p per mile for battery electric cars and £0.015p per mile for plug-in hybrid cars. The Chancellor states that this will contribute towards helping road maintenance.
This fee will increase each year in line with the Consumer Price Index. Currently, no framework has been revealed regarding how the policy will be enforced or how drivers will be required to pay. It’s estimated to add roughly £300 for every 10,000 miles travelled in an electric vehicle.
Launched 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 raised this threshold to £50,000 for electric vehicles, which means buyers 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 intact. If your vehicle was produced over four decades ago, you’ll still be classified under the “historic vehicle” category and pay zero in VED.
Similarly, road tax exemptions for disabled drivers remain untouched. If you’re eligible, you’ll continue to be completely exempt from these increases.
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