Drivers issued warning as cars face £2,745 rise in tax - see which vehicles are affected
Drivers are being warned of a rise in car tax from April next year.
With the new rates, the most polluting vehicles producing over 255g/km will see a huge £2,745 increase from £2,745 to £5,490 - a hike of 100%. This includes many HGVS, as well as several normal passenger cars like the V8 Range Rover and Aston Martin Vantage.
Supercars have become subjected to a premium fee of £490 and tax calculation based on emissions, too, including the Lamborghini Aventador. Others include the Bentley Continental GT Supersports, Maserati GranTurismo, Ferrari GTC Lusso, Bentley Mulsanne, Aston Martin Vantage and Rolls Royce Dawn.
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Rates for cars emitting between one and 50 grams of CO2 per kilometre, including hybrid vehicles, will increase from £10 to £110 for 2025-26 for the first year. And increases will be seen for cars emitting 51-75g/km of CO2 with the cost going from £30 to £130, reports BirminghamLive.
The biggest price hike will be seen for owners of vehicles that emit 76g/km of CO2 and above. Rates will "double from their current level" for 2025-26.
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The lowest rate in this category — 76-90g/km — currently costs £135, meaning drivers will have to pay £270. The Budget document read: "The government will change the VED First Year Rates for new cars registered on or after 1 April 2025 to strengthen incentives to purchase zero emission and electric cars, by widening the differentials between zero emission, hybrid and internal combustion engine (ICE) cars."
Nicholas Lyes, director of policy and standards at IAM RoadSmart, said: "Increasing vehicle excise duty on all but zero emission vehicles in the first year will hit those buying new conventional vehicles in the pocket. A better solution to incentivise the take-up of electric vehicles would have been to cut VAT on the sale of new electric vehicles with a list price of £40,000 and under."