
Drivers of some vehicles face enormous vehicle tax payments this year - with some doubling
A whopping 59 cars from 24 brands, including popular manufacturers such as Ford, BMW and Mercedes, have been hit with a £2,745 car tax hike since in April 2025 - meaning anyone buying one of these cars is impacted. This comes on the back of significant changes in Vehicle Excise Duty (VED) rates announced in the Autumn Budget by Labour.
First-year VED fees for petrol and diesel models have been hiked this year. These are hefty fees paid by owners of brand-new vehicles before they switch to the standard rate. Fees rose on a sliding scale, with most of the higher tiers seeing fees double from their current 2024 rates.
Models producing over 255 g/km of CO2 were hit with the highest £2,745 increase, affecting some of the most popular vehicles on the road. This means common mid-market brands such as Ford and Toyota have some models affected.
BMW, Mercedes and Audi models are also feeling the pinch. In addition, high-end vehicles will bear the brunt of the change.
Among those facing the new tax are some models of Porsche, Lotus, Lamborghini and McLaren, reports Lancs Live. Chancellor Rachel Reeves announced at the end of October that drivers of new petrol, diesel and hybrid vehicles would face higher first-year tax rates.
It was in first year road tax where the biggest changes were seen - in the top band of 255+g/km emissions it rose to £5,490 having previously been £2,475. In standard road tax rate, which is what you’ll pay annually to tax your car from the second year onwards, for all cars registered registered after 1 April 2017 it is £195 – petrol, diesel, hybrid and electric - it was previously £190 for petrol/diesel, with a £10 discount for hybrids, and free for electric cars.
The expensive car supplement is also increasing to £425 per year (previously £410), which you need to pay for the second to sixth year your car is on the road if it cost more than £40,000 new.
The move is designed to encourage consumers to buy electric vehicles and widen the gap between 'higher polluting' vehicles and EVs. The first-year tax figure is calculated based on the amount of carbon dioxide the vehicle produces.
Electric vehicles (EVs), which have been enjoying the perk of not paying Vehicle Excise Duty (VED), are set for a change as owners will face a nominal £10 charge for their first year's VED from April - a decision that has now been put on ice. In contrast, drivers of petrol, diesel and hybrid cars are gearing up for a hefty increase, with current rates expected to double by 2025, according to Lancs Live.
Car Dealer Magazine revealed that this could mean a new Ford Puma might see its first-year VED jump from £220 to £440, while those splashing out on a luxury Range Rover could be hit with a rise from £2,745 to an eye-watering £5,490. Chancellor Rachel Reeves, in her Budget speech, informed MPs: "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."
She further stated that the government will continue to support EVs, saying: "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 document illuminated the forthcoming alterations, stating: "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."
The statement further disclosed: "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."
Here is the list of new car models emitting more than 255 g/km of CO2:
Aston Martin DB12
Aston Martin DBX707
Aston Martin Vantage
Bentley Bentayga EWB
Bentley Bentayga S
Bentley Bentayga Speed
Bentley Continental GT
Bentley Continental GT Convertible
Bentley Flying Spur
BMW M3 CS
BMW M4 CSL
BMW X5 M Competition
BMW X6 M Competition
BMW X7 M60i
Chevrolet Corvette Z06
Ferrari 296 GTS
Ferrari 296 GTB
Ferrari 812 GTS
Ferrari 812 Superfast
Ferrari F8 Spider
Ferrari F8 Tributo
Ferrari Portofino M
Ferrari Roma Spider
Ferrari SF90 Stradale
Ferrari SF90 Spider
Ferrari Purosangue
Jaguar F-Type R
Jaguar F-Type SVR
Jeep Grand Cherokee Trackhawk
Lamborghini Aventador Ultimae
Lamborghini Huracán STO
Lamborghini Urus Performante
Lamborghini Urus S
Land Rover Defender V8
Land Rover Discovery V6
Land Rover Range Rover SV
Land Rover Range Rover Sport SV
Maserati Levante Trofeo
Maserati MC20
Maserati Quattroporte Trofeo
McLaren 720S
McLaren 765LT
McLaren Artura
McLaren GT
McLaren Speedtail
Mercedes-AMG G 63
Mercedes-AMG S 63 E Performance
Porsche 718 Cayman GT4 RS
Porsche 911 GT3
Porsche 911 Turbo S
Porsche Cayenne Turbo GT
Porsche Panamera Turbo S
Rolls-Royce Cullinan
Rolls-Royce Dawn
Rolls-Royce Ghost
Rolls-Royce Phantom
Rolls-Royce Wraith
This list consists of sports cars, high-performance SUVs, and grand tourers—vehicles where outright performance is prioritised over emissions. If you’re choosing a new car and want to avoid the highest Vehicle Excise Duty rates coming in April 2025, these are the models to skip.