Almost 60 petrol and diesel cars are expected to be slapped with a whopping £200 car tax hike, with bills rising to £5,690 per year. Popular vehicles from top brands such as Audi, BMW, Ford and Mercedes make the list with prices set to rise from April 1, 2026.
Vehicle Excise Duty (VED) rates increase each Spring in line with inflation, although costs vary depending on tax bands. Owners of brand-new vehicles pay the highest bills, with first-year rates setting drivers back thousands of pounds. Brand new cars pay VED tax on a sliding scale depending on vehicle emissions, with the most-polluting vehicles charged the most.
Cars emitting more than 255g/km of CO2 saw VED rates double last year, with Labour increasing costs from £2,745 to £5,490 per year. However, fees will rise again from April as costs increase to £5,690 per year in a major blow for owners.
New models understood to emit more than 255g/km of CO2 include vehicles such as the BMW M8 4.4 V8, Ford Mustang 5.0 V8 and Mercedes-Benz AMG GT 4.0 V8. High-performance models such as the stunning Ferrari Purosangue 6.5 V12, Lamborghini Huracan 5.2 V10 and Porsche 911 3.7T 992 Turbo are also listed.
However, it’s not all fancy sportscars or luxury models, with more ordinary vehicles such as the Toyota Hilux 2.8D and Volkswagen Amarok 3.0 TDI also thought to be affected. Motorists will only pay the top-end £5,690 charge in their first year on the roads, with owners reverting to the standard VED charge from year two.
This currently sits at £195 per year, but is set to increase to £200 per annum from April 1. HM Revenue and Customs (HMRC) has previously explained the new fees were part of standard uprating charges.
Exchequer Secretary Dan Tomlinson confirmed the update, explaining: “Vehicle Excise Duty (VED), sometimes known as 'road tax' or 'vehicle tax', is a tax on vehicles used or kept on public roads.
“Different rates apply to cars, vans, and motorcycles, and the rate for each vehicle is calculated according to a range of factors, such as its date of first registration, weight, or CO2 emissions.”
