VED increases: Government plans mean high-polluting cars will see road tax double

Motoring and Travel

Updated on 22 January 2025 | 0 Comments

As Budget announcements mean road tax rates soar to £5,490 for some drivers, we look at the cars on the Government’s hit list.

Under plans announced in the Autumn Budget, some 59 premium cars will be hit by a huge hike in road tax – also known as Vehicle Excise Duty or VED.

As a result, many drivers will see their annual bills double from £2,745 to £5,490.

Cars affected by the Chancellor’s move fall into the category of high-end and performance models, emitting more than 255g/km of CO2.

Likewise, brands emitting between 226 and 255g/km will see their rates rise from £2,340 to £4,680.

Scroll down for a list of the top 10 vehicles most affected by the VED hike.

Note, the changes only apply to brand-new vehicles and come into effect next April.

The standard rate of is VED is currently £190, although this is set to rise in line with inflation.

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The worst-hit brands

According to research reported in Birmingham Live, many of the 59 most affected cars are from premium brands such as Alfa Romeo, Audi, Bentley and BMW. 

Drivers of SUVs such as Range Rover and Jeep will also face the whopping bill.

Perhaps luckily for the average driver, these cars tend to be out of our price range.

£1.7 billion by 2030

According to the Government, the move is designed to reduce the number of high-polluting cars on the roads.

However, industry experts predict the doubling of VED for certain vehicles will bring an extra £400 million into the public purse next year, surging to £1.7 billion within a decade.

What about electric vehicles?

While the Government claims the move is to encourage the take-up of electric vehicles (EVs), drivers of these cars will also be dragged into the tax from next year.

At present, these vehicles are exempt from VED.

From April, however, new EVs will have to pay the first-year VED at the lowest rate, currently £10, applicable to the 1-50g/km emissions band.

From the second year, EVs will move to the standard VED rate, currently set at £190 per year.

Meanwhile, EVs priced over £40,000 will face an additional premium charge of £419 per year for five years after the first registration.

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Which cars will see their VED double?

Here's a list of the top 10 vehicles most affected by the VED hike, according to the Daily Mail. 

Below that is also a full rundown of all 59 motors on the Government’s list, according to Birmingham Live.

1.    Alfa Romeo Stelvio Quadrifoglio
Price: from £88,645 
CO2 emissions: 267g/km
First-year tax cost: £5,490 or 6.2% of retail price

2.    Ford Mustang
Cost: from £55,725
CO2 emissions: 274g/km
First-year road cost: £5,490 or 9.9% of retail price

3. Ford Ranger Tremor & Wiltrak X (2.0L diesel)
Cost: from £42,660
CO2 emissions: 270g/km (Tremor)
First-year road tax: £5,490 or 12.9% of retail price

4. Ineos Grenadier
Cost: from £65,015
CO2 emissions: 286g/km
First-year road tax: £5,490 or 8.4% of retail price

5. Jeep Wrangler Rubicon
Cost: from £63,125
CO2 emissions: 269g/km
First-year road tax cost:  £4,680 or 7.4% of retail price

6. Land Rover Defender 90/110 V8 petrol
Cost: from £93,445
CO2 emissions: 316g/km
First-year road tax: £5,500 or 5.9% of retail price

7. Land Rover Range Rover V8 Petrol/RR Sport SUV
Cost: from £142,400
CO2 emissions: 261g/km
First-year road tax: £5,500 or 3.9% of retail price

8. Maserati Levante V6 petrol
Cost: from £115,215
CO2 emissions: 282g/km
First-year road tax: £5,490 or 4.8% of retail price

9. Porsche Cayenne
Cost: from £76,000
CO2 emissions: 275g/km
First-year road tax: £5,490 or 7.2% of retail price

10. Porsche Macan S/GTS (petrol)
Cost: from £63,000
CO2 emissions: 265g/km
First-year road tax: £5,490 or 8.7% of retail price

Here’s the full list of 59 motors on the Government’s hit list.

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