Motorists across the UK are set to face steep increases in Vehicle Excise Duty (VED) starting April 1, 2025. A total of 59 high-emission car models from 24 different manufacturers will be impacted by a tax hike of up to £2,500 in the first year. This move is part of the government’s effort to reduce carbon emissions and encourage drivers to switch to electric and low-emission vehicles.
What Is Changing?
The UK government has announced an increase in VED rates, primarily targeting vehicles with high carbon dioxide (CO₂) emissions. Under the new tax structure:
- Vehicles emitting more than 255g/km of CO₂ will see their first-year VED increase to £5,490, an increase of £2,745 from the previous rate.
- Luxury car supplement for vehicles over £40,000 will also rise to £425 annually from the second to the sixth year, up from £410 previously.
- High-performance petrol and diesel vehicles will be among the hardest hit, with several popular models seeing their road tax nearly double.
These changes are in line with the UK government’s commitment to reducing emissions and promoting the transition to greener vehicles.
For detailed information on the updated VED rates, visit the UK Government’s official page on road tax: https://www.gov.uk/vehicle-tax-rate-tables.
Full List of Affected Cars
The tax hike will impact models from luxury and performance brands such as BMW, Audi, Ford, Mercedes-Benz, Lamborghini, and Porsche. Below are some of the key models that will see increased road tax:
Luxury & Performance Vehicles:
- Aston Martin: DB12, DBX, Vantage
- Audi: RS3, RS6, RS7, SQ7, SQ8, R8
- Bentley: Bentayga, Continental GT, Flying Spur
- BMW: Alpina XB7, M8, X5M, X6M, X7M
- Ferrari: Purosangue, Roma
- Lamborghini: Huracan, Urus, Revuelto
- McLaren: GT 4.0T
- Mercedes-Benz: AMG GT, G63, G400D, GLE63, GLS63
- Porsche: 718 Cayman, 911, Cayenne, Macan
- Rolls-Royce: Ghost, Cullinan
Popular SUVs & Trucks:
- Ford: Mustang, Ranger 2.0TD, Ranger 3.0 V6
- INEOS: Grenadier 3.0
- Jaguar: F-Pace 5.0
- Jeep: Wrangler 2.0
- Land Rover: Defender 90 & 110, Range Rover P530
- Maserati: Levante, MC20
- Toyota: Hilux 2.8, Land Cruiser 2.8
- Volkswagen: Amarok 3.0
The full list of affected vehicles can be found on The UK Government’s VED policy update page: https://www.gov.uk/government/publications/vehicle-tax-rates-2025.
Why Is the Tax Increasing?
The primary goal behind this tax hike is to discourage the use of high-emission petrol and diesel vehicles while promoting electric vehicles (EVs) and hybrids. The UK aims to achieve net-zero emissions by 2050, and as part of this initiative, the sale of new petrol and diesel cars will be banned by 2035.
The government argues that increasing VED for high-emission cars will encourage people to opt for zero-emission alternatives, which currently enjoy much lower road tax rates or complete exemption in some cases.
To explore electric vehicle incentives and grants, visit The Office for Zero Emission Vehicles (OZEV): https://www.gov.uk/government/organisations/office-for-zero-emission-vehicles.
What Should Affected Car Owners Do?
If you own one of the affected vehicles, you have several options:
- Consider switching to an electric vehicle (EV) – Many government incentives are available for buyers of new EVs, including grants and reduced VED rates.
- Look into hybrid alternatives – Some hybrid models still qualify for lower tax bands while offering a mix of fuel efficiency and lower emissions.
- Plan for the tax increase – If selling or trading your high-emission car isn’t an option, be prepared for the additional cost in ownership.
Industry & Public Reaction
The tax increase has sparked debate among car owners and industry experts. Critics argue that the policy disproportionately affects those who already own petrol and diesel cars, especially in rural areas where EV infrastructure is still lacking.
However, environmental advocates support the move, stating that it is a necessary step to reduce air pollution and accelerate the adoption of cleaner transport options.
The Society of Motor Manufacturers and Traders (SMMT) has urged the government to provide greater support for electric vehicle infrastructure to ensure a smoother transition for drivers affected by these tax hikes. More information on their stance can be found at https://www.smmt.co.uk.
Final Thoughts
The £2,500 tax hike on high-emission vehicles marks a significant step in the UK’s shift towards sustainable transportation. While it may place a financial burden on some car owners, the long-term benefits for the environment and public health could outweigh the short-term costs.
With the upcoming ban on new petrol and diesel cars in 2035, motorists are encouraged to consider more sustainable options now. Whether this tax policy will effectively push more people towards electric vehicles remains to be seen, but it is undoubtedly a bold move in the fight against climate change.
For full details on the UK Government’s environmental and transport policies, visit https://www.gov.uk/government/topics/transport-and-infrastructure.
Vikas is a seasoned finance writer with a keen eye for unraveling complex global financial systems. From government benefits to energy rebates and recruitment trends, he empowers readers with actionable insights and clarity. When he’s not crafting impactful articles, you can find him sharing her expertise on Social Media. You can connect with him via email at [email protected].
