A huge 59 vehicles across 24 different manufacturers, among them household names such as Ford, BMW and Mercedes, are set to face a £5,690 charge from April.

This hike follows significant amendments to Vehicle Excise Duty (VED) rates introduced last year, which left certain models facing a huge £2,745 increase.

The Government opted to dramatically raise first-year VED fees for petrol and diesel cars from April 2025 onwards. These charges represent considerable sums paid by buyers of brand-new vehicles before falling to the standard rate thereafter.

The increases have been implemented on a tiered basis, with the highest bands seeing charges roughly double those of 2024 levels.

Vehicles emitting more than 255g/km of CO2 bore the full brunt of the £2,745 rise, affecting some of Britain's most coveted cars on our roads.

First-year fees climbed to £5,490, with a further rise to £5,690 anticipated from April 1, 2026. Popular manufacturers including Ford and Toyota will find selected models caught up in these changes.

BMW, Mercedes and Audi ranges will also feel the impact. Premium models are set to bear the most severe consequences of these adjustments, with motors from Porsche, Lotus, Lamborghini and McLaren among those facing the new levy.

Chancellor Rachel Reeves unveiled the policy as a means of steering motorists towards electric vehicle purchases while widening the gap between 'higher polluting' vehicles and EVs.

The first year's tax liability is calculated according to the volume of carbon dioxide a vehicle produces.

Currently, those opting for electric vehicles (EVs) enjoy an exemption from Vehicle Excise Duty (VED), while cars emitting between 111g and 150g/km of CO2 face a £220 levy.

Vehicles exceeding 255g/km are subject to an even heftier first-year charge of £5,490 - a figure set to climb even further.

Changes introduced last April meant EV purchasers paid a mere £10 for their first year's VED - a rate that has remained static until recently. By contrast, petrol, diesel, and hybrid car owners are preparing for a hefty rise as these charges are due to double.

A Treasury spokesman revealed to Car Dealer Magazine that from April 2025, purchasing new vehicles such as a Ford Puma could see first-year VED costs soar from £220 to £440. For some models, including Range Rover, the initial year's duty would skyrocket from £2,745 to a whopping £5,490 - with a subsequent increase to £5,690 anticipated.

Chancellor Rachel Reeves declared in her Budget: "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."

The Budget document further outlined plans stating: "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."

It added: "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 applied at registration and differ according to emission levels.

The document detailed 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 car tax rates from April 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

After first year will pay standard rate - expected to be £200 (currently £195)

A complete list of new models emitting over 255 g/km has been published:

• Aston Martin DBX 4.0 V8


• Bentley Flying Spur 4.0 V8


• Range Rover Sport 4.4P V8


• BMW X5 M 4.4 V8


• BMW X6 M 4.4 V8


• Ford Ranger 3.0 V6


• Porsche Cayenne 4.0T V8


• McLaren GT 4.0T V8


• Chevrolet Corvette Stingray 6.2 V8


• Toyota Hilux 2.8D


• Maserati Levante 3.8 V8


• Maserati MC20 3.0 V6


• Range Rover 4.4 P530 V8


• Rolls-Royce Ghost 6.75 V12


• Audi RSQ8 4.0 TFSI V8


• Porsche 718 Cayman 4.0 GT4


• Range Rover 4.4 P615 V8


• Aston Martin DB12 4.0 V8


• Ferrari Roma 3.8T V8


• Porsche 911 3.7T 992 Turbo


• Bentley Continental 6.0 W12


• Bentley Continental 4.0 V8


• Bentley Bentayga 4.0 V8


• Volkswagen Amarok 3.0 TDI


• Aston Martin Vantage 4.0 V8


• Audi R8 5.2 FSI V10


• Land Rover Defender 90 5.0 P425 V8


• Jeep Wrangler 2.0 GME


• Ford Ranger 2.0 TD EcoBlue


• Ford Mustang 5.0 V8


• Ford Ranger 3.0 EcoBlue


• BMW Alpina XB7 4.4 V8


• Mercedes-Benz SL55


• Audi RS7 4.0 TFSI V8


• Mercedes-Benz G400D


• Lamborghini Revuelto 6.5 V12


• Mercedes-Benz G63


• Lamborghini Urus 4.0 V8 BiTurbo


• Mercedes-Benz AMG GT 4.0 V8


• Toyota Land Cruiser 2.8D


• BMW X7 M 4.4 V8


• Jaguar F-Pace 5.0 P575 V8


• Ferrari Purosangue 6.5 V12


• Rolls-Royce Cullinan 6.75 V12


• Lamborghini Huracan 5.2 V10


• INEOS Grenadier 3.0P


• Lotus Emira 3.5 V6


• Porsche Macan 2.9T V6


• Mercedes-Benz GLS63h


• BMW M8 4.4 V8


• Audi SQ7 4.0 TFSI V8


• Alfa Romeo Stelvio 2.9 V6 Bi-Turbo


• Audi SQ8 4.0 TFSI V8


• Maserati Levante 3.0 V6


• Audi RS6 4.0 TFSI V8


• Audi S8 4.0 TFSI V8


• Land Rover Defender 110 5.0 P425 V8


• Mercedes-Benz GLE63


• Mercedes-Benz GLC63

Vehicles priced above £40,000 liable for the VED luxury car tax surcharge

Cars valued over £40,000 when purchased brand new (including any additional extras) will incur an extra annual charge of £425 (increased from £410) on top of standard yearly VED car tax rates, applicable from years one through to six of ownership.

Those who have spent more than £40,000 on a new vehicle (including extras) will be hit with 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 1, 2026, the threshold for the so-called "luxury car tax" (that £425 premium) will increase to £50,000 for electric vehicles, whilst petrol and diesel cars will remain at the £40,000 threshold.

For those driving a cherished older model or simply a dependable runabout 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 face a new 'mileage tax' to address the shortfall from no fuel duty being paid on these vehicles. From April 2028, drivers 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 says this will go towards funding road maintenance. That figure will rise each year in line with the Consumer Price Index.

Currently, no framework has been announced regarding how this policy will be rolled out or how drivers will be expected to pay. It is estimated to add approximately £300 per 10,000 miles travelled in an electric vehicle.

Expensive Car Supplement raised for EVs

Introduced in 2017, the Expensive Car Supplement applies an additional £425 per year for five years following the initial tax payment on new vehicles priced above £40,000.

However, the Budget has raised that threshold to £50,000 for electric vehicles, meaning EV buyers purchasing cars below this price will be exempt from the Expensive Car Supplement.

Cars over 40 years old

The classic car 40-year tax rule remains firmly intact. If your vehicle was manufactured more than 40 years ago, it still falls within the 'historic vehicle' category, meaning you pay £0 in VED.

Likewise, road tax exemptions for disabled drivers remain unchanged - if you qualify, you will continue to be fully exempt from these increases.

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