Seven popular cars ‘will disappear’ from UK roads forever due to tax change

Seven popular types of car "will disappear" from UK roads forever, experts have warned. The warning from motoring groups and experts has been issued after Rachel Reeves’ tax changes in the Labour Party Budget last week.

Hybrids are set to take a hit with company car tax incentives now strongly supporting a switch to EVs. Plug-in hybrid drivers face particularly steep tax increases, especially for new PHEV owners.

According to the Association of Fleet Professionals, many businesses will now need to redraw their vehicle choice lists following the Budget. Paul Hollick, chair at the AFP, said: "The Budget can be viewed as something of a tidying-up operation by the government when it comes to company cars.”

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Mr Hollick added: "Drivers who have recently taken on a PHEV on a four-year cycle will see their tax massively increase in its last year. Many drivers are expected to approach their employers about early vehicle changes to avoid the tax hike.”

Away from plug-in hybrids, a warning has been issued for pick-up motorists too. Double cab pick-ups will be reclassified as cars from April 2025, and the new shake-up extends to ‘grandfather rights’ for existing users until the 2029-30 tax year at the latest.

Hollick said: "The situation for double cabs is perhaps less acute because of the grandfather rights situation but anyone still in a double cab after April 2029 is going to see an exponential increase in their tax.” Among the leading double-car pick-ups in the UK are the Ford Ranger.

The most popular PHEV motors in the UK last year included the Ford Kuga, Honda Civic, Toyota Prius, research has found. And motoring groups have also earmarked more high-end models such as the BMW 530e, Mercedes GLC 300e, and the Range Rover P510e as popular cars for UK road users.