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28th March 2025
02:56pm GMT
It is thought 59 cars from 24 different brands, including big names like Ford, BMW and Mercedes, are facing a £2,745 car tax hike from next week.
This is due to major alterations in Vehicle Excise Duty (VED) rates unveiled in the Autumn Budget by Labour.
The Government has opted to significantly ramp up first-year VED charges for petrol and diesel models starting April 2025.
These translate to substantial fees that new vehicle owners have to cough up before transitioning to the standard rate.
The fee increase will be on a sliding scale, those on higher tiers will see their fees double from the current 2024 rates.
Vehicles emitting over 255 g/km of CO2 are in line for the steepest £2,745 rise, impacting some of the most common vehicles on our roads.
This means that popular mid-range brands such as Ford and Toyota will see some of their models affected. BMW, Mercedes and Audi models will also feel the price rise.
Luxury vehicles will face the lion's share of the charge with owners of Porsche, Lotus, Lamborghini and McLaren expected to bit hit with a steep hike.
Chancellor Rachel Reeves announced at the end of October that drivers of new petrol, diesel and hybrid vehicles would be hit with higher first-year tax rates.
In her Budget speech to Parliament last year, Chancellor Rachel Reeves said: "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 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 move aims to incentivise consumers to opt for electric vehicles and widen the gap between 'higher polluting' vehicles and EVs.
The first-year tax figure is determined based on the amount of carbon dioxide the vehicle emits.
Electric vehicle (EV) drivers currently enjoy no Vehicle Excise Duty (VED) costs, but things are about to change. From April, EV owners will have to fork out a modest £10 for their first year's VED, a recently frozen rate.
Owners of petrol, diesel, and hybrid vehicles, meanwhile, are preparing for a dramatic increase with rates expected to double.
For example, a new Ford Puma could cost you £440 in the first-year VED by April this year as opposed to the current charge of £220.
Meanwhile, Range Rovers will face a drastic jump from a £2,745 fee right up to a staggering £5,490.
Officials have released an extensive list of new models that emit over 255 g/km:
