59 Vehicles Set to Face Steep Increase in Car Tax from 1st April
Motorists across the UK are bracing themselves for a significant increase in Vehicle Excise Duty (VED) rates, set to come into effect on 1st April 2025. New regulations will impact owners of 59 cars, particularly hitting hard those with petrol and diesel models, as well as the most polluting vehicles.
First-year VED rates are being ramped up, with some drivers potentially seeing their annual charges double. This change will have the most severe impact on vehicles emitting over 255g/km of CO2, with their bills skyrocketing from £2,745 to a staggering £5,490 per year. Luxury and high-performance models from top brands like Audi, Aston Martin, Bentley, BMW, Mercedes, Ford, Porsche, and Rolls-Royce are expected to be among the worst affected.
The adjustments to first-year VED rates are designed to create a wider gap between different fuel types, encouraging cleaner and more environmentally friendly vehicles on the roads. It’s estimated that these changes will generate an additional £415 million for the Treasury in the fiscal year 2025/26, with even more revenue projected for the following years.
One controversial aspect of the new VED rates is that electric vehicles will no longer maintain their tax-exempt status. This move has been met with criticism, with some calling it a disappointment and a setback in encouraging green vehicle adoption. Glen Sanderson, the Conservative leader at Northumberland County Council, described it as a “slap in the face” to drivers who chose electric cars based on the previous tax incentives.
Among the list of vehicles emitting over 255g/km of CO2 are popular models like the Audi R8, Bentley Continental, BMW X5 M, Ferrari Roma, Ford Mustang, Lamborghini Urus, Mercedes-AMG GT, Porsche 911 Turbo, Range Rover Sport, Rolls-Royce Cullinan, and many others. Owners of these vehicles will face a substantial increase in their yearly tax burden due to the new VED rates.
The government’s reasoning behind these changes is to align tax rates with environmental objectives and steer consumers towards more sustainable transport options. However, the impact on individuals with high-emission vehicles is significant, potentially leading to financial strain for some car owners.
As the automotive industry continues to evolve towards cleaner technologies, these VED updates represent a push towards greener practices and reducing harmful emissions. While the short-term effect may be challenging for some motorists, the long-term goal is to create a more environmentally conscious and sustainable driving culture in the UK. Time will tell how these changes influence consumer behaviour and the overall composition of vehicles on British roads.
With the looming deadline of April 1st just around the corner, vehicle owners impacted by the new VED rates need to be prepared for the increased financial implications. Adapting to these changes may require adjustments in vehicle choices, driving habits, and budgeting to navigate the evolving landscape of car taxation in the UK.
By staying informed and proactive, motorists can make informed decisions about their vehicles and contribute to a cleaner and greener future for transportation in the country. The journey towards sustainable mobility requires collective effort and individual action, making each decision regarding vehicle ownership and usage crucial in shaping a more environmentally friendly automotive sector.