Car Tax Increase of £2,000 Imminent for 59 Car Models
In just a few days, car owners of 59 specific models are bracing for a significant increase in car tax, amounting to an additional £2,000. The changes, set to take effect from April 1, will impact drivers of new luxury and performance vehicles that fall under certain emission levels, particularly those emitting over 255g/km of CO2. The forthcoming alteration in vehicle excise duty is expected to hit the pockets of thousands of drivers, with some facing a substantial spike in their bills from £2,745 to £5,490.
Under the revised VED (Vehicle Excise Duty) regulations, a total of 59 car models have been identified to be affected by the tax adjustments. Individuals driving new luxury and high-performance vehicles that surpass the 255g/km CO2 emission threshold will be the most adversely affected by the impending changes. While the standard road tax rates will only increase in line with inflation, vehicles purchased after the specified date emitting more than 75g per kilometre of CO2 will be subject to significantly higher road tax charges.
The revised rates for first-year road tax across the higher CO2 bands are set to double, aiming to generate approximately £400 million for treasury funds in the upcoming year and an estimated £1.7 billion by the end of the decade. The budget briefing document further outlines the government’s acknowledgment of the disproportionate impact of the current VED Expensive Car Supplement threshold on buyers of zero-emission cars. In response, the government is considering raising the threshold exclusively for zero-emission vehicles in a future fiscal event to facilitate the purchase of electric cars.
Among the list of affected cars emitting over 255g/km of CO2 are renowned models such as the Alfa Romeo Stelvio 2.9 V6 Bi-Turbo, Aston Martin DB12 4.0 V8, Bentley Bentayga 4.0 V8, Ferrari Purosangue 6.5 V12, Lamborghini Urus 4.0 V8 BiTurbo, and Rolls-Royce Cullinan 6.75 V12, among others. These vehicles represent a range of luxury and performance brands known for their high CO2 emissions, putting them in the bracket for increased road tax charges post the enforcement of the updated VED rates.
The implementation of these changes in car tax legislation signifies a significant financial impact on drivers of specific high-emission vehicles. As the automotive industry continues to shift towards sustainability and lower emissions, these adjustments aim to incentivise the adoption of more eco-friendly vehicles while reflecting the government’s commitment to reducing carbon emissions and promoting environmental consciousness. Car owners are advised to stay informed about the upcoming alterations in car tax rates and be prepared for the financial implications that may arise from the revised VED framework effective from April 1.