Full list of 60 cars from 24 brands including Ford and BMW facing £2,745 car tax in April 2025

The Government announced significant changes to Vehicle Excise Duty (VED) rates in the Autumn Budget

12:38, 26 Feb 2025Updated 14:29, 27 Feb 2025

Some 59 cars from 24 brands, including big names like Ford, BMW and Mercedes, are facing a £2,745 car tax hike come April 2025. This is due to major alterations in Vehicle Excise Duty (VED) rates unveiled in the Autumn Budget by Labour.

The Government has opted to significantly ramp up first-year VED charges for petrol and diesel models starting April 2025. These are substantial fees that new vehicle owners have to cough up before transitioning to the standard rate.

The fee increase will be on a sliding scale, with most of the higher tiers see their fees double from the current 2024 rates. Models emitting over 255 g/km of CO2 are in line for the steepest £2,745 rise, impacting some of the most common vehicles on our roads.

This means that popular mid-range brands such as Ford and Toyota will see some of their models affected. BMW, Mercedes and Audi models will also feel the pinch.

traffic jams in the city, road, rush hour

A number of models are affected(Image: Jung Getty via Getty Images)

Moreover, luxury vehicles will bear the lion’s share of the change. Among those set to face the new tax are certain models of Porsche, Lotus, Lamborghini and McLaren, according to Lancs Live, reports Lancs Live.

Chancellor Rachel Reeves announced at the end of October that drivers of new petrol, diesel and hybrid vehicles would be hit with higher first-year tax rates. The move aims to incentivise consumers to opt for electric vehicles and widen the gap between ‘higher polluting’ vehicles and EVs.

Drivers of some vehicles will face enormous vehicle tax payments from April

Drivers of some vehicles will face enormous vehicle tax payment increases from April(Image: PA)

The first-year tax figure is determined based on the amount of carbon dioxide the vehicle emits.

Electric vehicle (EV) drivers currently enjoy no Vehicle Excise Duty (VED) costs, but things are about to change. From April, EV owners will have to fork out a modest £10 for their first year’s VED, a recently frozen rate.

Owners of petrol, diesel, and hybrid vehicles, meanwhile, are preparing for a dramatic increase with rates expected to double. A Treasury spokesperson told Car Dealer Magazine that conventional cars’ VED rates might just double come 2025.

For instance, if you’re eyeing up a new Ford Puma, by April 2025, you could be shelling out £440 in the first-year VED instead of today’s £220. Luxury vehicle enthusiasts looking at options like a Range Rover will face a drastic jump from a £2,745 fee right up to a staggering £5,490.

Chancellor Rachel Reeves has been urged to raise the personal tax thresholds to stop poorest workers paying more tax

Chancellor Rachael Reeves spelled out changes in the Budget(Image: PA)

In her Budget speech to Parliament last year, Chancellor Rachel Reeves said: “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.

“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 shed more light, saying: “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 added: “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.”

Officials have released an extensive list of new models that emit over 255 g/km.