A total of 59 cars from 24 brands, including popular manufacturers such as Ford, BMW and Mercedes, are set to face a £2,745 car tax increase in April 2025. This comes as a result of significant changes in Vehicle Excise Duty (VED) rates announced in the Autumn Budget by Labour.The party has decided to substantially raise first-year VED fees for petrol and diesel models from April 2025.

These are hefty fees paid by owners of brand-new vehicles before they switch to the standard rate.Fees will rise 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 are set for 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 will have some models affected.

BMW, Mercedes and Audi models will also be hit.In addition, high-end vehicles will bear the brunt of the change. Among those set to face 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.

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.

Currently, those opting for electric vehicles (EVs) benefit from paying no Vehicle Excise Duty (VED), while vehicles emitting between 111g and 150g/km of CO2 are hit with a £220 charge, and those exceeding 255g/km face an even heftier first-year fee of £2,745. However, the upcoming changes in April will see EV owners paying a nominal £10 for their first year’s VED—a rate that has been recently frozen, reports Lancs Live.

On the flip side, drivers of petrol, diesel, and hybrid cars are gearing up for a significant hike as these rates are poised to double.

A Treasury spokesperson revealed exclusively to Car Dealer Magazine that by April 2025, purchasing new vehicles like a Ford Puma could result in a doubled first-year VED cost, increasing from £220 to £440. For higher-end models such as a Range Rover, the charge in the first year would escalate from £2,745 to an astonishing £5,490.

Chancellor Rachel Reeves announced during her Budget statement: “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.”

Reeves further stated, “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 elaborated on vehicle taxation, explaining: “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.”

It further outlined plans stating: “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 full lose of cars producing more than 255 g/km of emissions:

  • Audi RS6 4.0 TFSI V8
  • Audi S8 4.0 TFSI V8
  • McLaren GT 4.0T V8
  • Audi R8 5.2 FSI V10
  • Lamborghini Huracan 5.2 V10
  • Chevrolet Corvette Stingray 6.2 V8
  • Volkswagen Amarok 3.0 TDI
  • Aston Martin DBX 4.0 V8
  • Ferrari Roma 3.8T V8
  • Audi SQ7 4.0 TFSI V8
  • Range Rover Sport 4.4P V8
  • Jaguar F-Pace 5.0 P575 V8
  • Aston Martin DB12 4.0 V8
  • Porsche 911 3.7T 992 Turbo
  • Jeep Wrangler 2.0 GME
  • Ford Ranger 2.0 TD EcoBlue
  • Audi RSQ8 4.0 TFSI V8
  • Lotus Emira 3.5 V6
  • Bentley Continental 4.0 V8
  • Audi SQ8 4.0 TFSI V8
  • Aston Martin Vantage 4.0 V8
  • Toyota Hilux 2.8D
  • Porsche Macan 2.9T V6
  • Mercedes-Benz SL55
  • Range Rover 4.4 P530 V8
  • Mercedes-Benz AMG GT 4.0 V8
  • Porsche 718 Cayman 4.0 GT4
  • Lamborghini Urus 4.0 V8 BiTurbo
  • Audi RS7 4.0 TFSI V8
  • Ford Mustang 5.0 V8
  • Toyota Land Cruiser 2.8D
  • Bentley Continental 6.0 W12
  • Mercedes-Benz GLC63
  • Ford Ranger 3.0 V6
  • INEOS Grenadier 3.0P
  • Range Rover 4.4 P615 V8
  • Land Rover Defender 90 5.0 P425 V8
  • Rolls-Royce Ghost 6.75 V12
  • Ford Ranger 3.0 EcoBlue
  • Mercedes-Benz G63
  • Ferrari Purosangue 6.5 V12
  • Rolls-Royce Cullinan 6.75 V12
  • Alfa Romeo Stelvio 2.9 V6 Bi-Turbo
  • Mercedes-Benz GLE63
  • Maserati Levante 3.0 V6
  • Porsche Cayenne 4.0T V8
  • BMW M8 4.4 V8
  • Maserati MC20 3.0 V6
  • Land Rover Defender 110 5.0 P425 V8
  • Mercedes-Benz G400D
  • Lamborghini Revuelto 6.5 V12
  • Bentley Bentayga 4.0 V8
  • BMW X7 M 4.4 V8
  • BMW X6 M 4.4 V8
  • BMW Alpina XB7 4.4 V8
  • Bentley Flying Spur 4.0 V8
  • Maserati Levante 3.8 V8
  • BMW X5 M 4.4 V8
  • Mercedes-Benz GLS63h