The tax on these cars will be £5,490 next year
From April 2025, the first-year tax on some petrol and diesel cars will be a whopping £5,490 under changes announced by Chancellor of the Exchequer Rachel Reeves . Her budget proposed doubling the Vehicle Excise Duty (VED) on high-emission vehicles in a bid to encourage motorists to switch to electric and hybrid cars.
The biggest tax increases will hit cars with CO2 emissions above 255g/km , which will be classified in the highest VED tier. Here's a breakdown of the 10 models that will be hit hardest:
- Alfa Romeo Stelvio Quadrifoglio
- Price : £88,645
- CO2 emissions : 267 g/km
- Tax : £5,490 (6.2% of price) This sporty SUV, powered by a 2.9-litre V6 twin-turbo engine, emits so much CO2 that it is clearly in the highest tax bracket.
- Ford Mustang
- Price : £55,725
- CO2 emissions : 274 g/km
- Tax : £5,490 (9.9% of price). The latest Mustang V8, with its high emissions levels, costs nearly £5,500 in tax in the first year.
- Ford Ranger Tremor and Wildtrak X (2.0 l diesel)
- Price : £42,660
- CO2 emissions : 270 g/km
- Taxes : £5,490 (12.9% of price). As the Ranger is a pick-up vehicle, it is no longer exempt from high road tax rates, making it significantly more expensive to run.
- Ineos Grenadier
- Price : £65,015
- CO2 emissions : 286 g/km
- Tax : £5,490 (8.4% of price) Both the petrol and diesel versions of this rugged SUV are subject to the same high tax rate.
- Jeep Wrangler Rubicon
- Price : £63,125
- CO2 emissions : 269 g/km
- Tax : £5,490 (8.7% of price). If you opt for a lower trim like the Sahara, you can reduce the tax, but it will still be high.
- Land Rover Defender V8
- Price : £93,445
- CO2 emissions : 316 g/km
- Tax : £5,490 (5.9% of price) The Defender's V8 option pushes emissions into the highest tax bracket.
- Land Rover Range Rover V8
- Price : £142,400
- CO2 emissions : 261 g/km
- Tax : £5,490 (3.9% of price). For buyers with six figures to spend, this tax may seem small in comparison in the first year.
- Maserati Levante V6
- Price : £115,215
- CO2 emissions : 282 g/km
- Tax : £5,490 (4.8% of price). Due to its emissions levels, this luxury SUV falls into the highest tax bracket.
- Porsche Cayenne
- Price : £76,000
- CO2 emissions : 275 g/km
- Taxes : £5,490 (7.2% of price) Higher trim levels or larger wheels on the Cayenne could push emissions into the highest bracket.
- Porsche Macan S/GTS
- Price : £63,000
- CO2 emissions : 265 g/km
- Taxes : £5,490 (8.7% of price). The petrol versions of the Macan are more expensive to tax, while the electric models are completely exempt from this increase.
tax policy in detail
According to the new rules:
- Zero-emission cars will only be subject to a road tax of £10 in the first year until 2030.
- Plug-in hybrids (1–50 g/km CO2) cost £110 , while slightly less efficient hybrids (51–75 g/km CO2) cost £130 .
- For petrol and diesel vehicles with emissions above 191 g/km, the vehicle tax doubles in the first year , making the maintenance of these most environmentally harmful vehicles significantly more expensive.
The changes are designed to incentivise switching to greener vehicles, but critics argue they penalise those who cannot afford an electric car. Experts such as the RAC have warned that this could lead to motorists keeping older, more polluting cars for longer.
The measure is expected to raise £400 million a year for the Treasury , but will have a significant impact on buyers of high-emission cars, as car tax rates will double for almost all non-electric models.