High-Emissions Cars to Be Hit with £5,690 VED Tax from Next Week
Motorists driving high-emissions vehicles are set to face a significant financial sting as Vehicle Excise Duty rates increase from next week. Cars which emit over 255 grams per kilometre will see their VED rates rise from £5,490 to £5,690 under new tax bands implemented by the Labour Party government.
Details of the VED Tax Changes
The tax adjustment specifically targets vehicles with the highest carbon dioxide emissions, reflecting the government's ongoing efforts to discourage environmentally damaging transport options. For cars registered after April 2017, the system involves a first-year tax based on CO2 emissions followed by a standard annual rate of £195 from the second year onward.
Simultaneously, from 1 April, the government will implement a higher threshold for the Expensive Car Supplement affecting fully electric vehicles. Only electric cars with a retail price exceeding £50,000 will now be subject to the £440 surcharge, representing a £10,000 increase in the threshold.
This adjustment comes after ministers reconsidered the initial proposal amid concerns that the supplement could reduce demand for greener vehicle alternatives. The revised approach acknowledges the premium pricing of electric vehicles compared to equivalent petrol and hybrid models.
Affected Vehicle Models
A comprehensive list of 59 vehicle models producing over 255 g/km has been published, including numerous luxury and performance vehicles from premium manufacturers. The affected models span various categories from SUVs to sports cars and include:
- Land Rover Defender 90 5.0 P425 V8
- Audi RSQ8 4.0 TFSI V8
- Lamborghini Huracan 5.2 V10
- Porsche 911 3.7T 992 Turbo
- Bentley Bentayga 4.0 V8
- Mercedes-Benz GLE63
- Chevrolet Corvette Stingray 6.2 V8
- Aston Martin Vantage 4.0 V8
- Ferrari Roma 3.8T V8
- Rolls-Royce Cullinan 6.75 V12
- McLaren GT 4.0T V8
- Range Rover Sport 4.4P V8
- Toyota Land Cruiser 2.8D
The complete list encompasses vehicles from manufacturers including Ford, Volkswagen, INEOS, BMW, Maserati, Toyota, Jaguar, Alfa Romeo, Jeep, and others, demonstrating the wide-ranging impact of these tax changes across the automotive industry.
Broader Implications for Motorists
These tax adjustments represent a dual approach to vehicle taxation policy: increasing costs for the most polluting vehicles while providing some relief for electric vehicle owners through the revised Expensive Car Supplement threshold. The changes come into effect from 1 April, giving affected motorists limited time to prepare for the increased financial burden.
The government's move signals continued emphasis on environmental considerations in transportation policy, with tax structures increasingly designed to reflect vehicle emissions levels. Motorists owning or considering purchasing high-emissions vehicles should factor these increased running costs into their financial planning.
