Tax. No one likes it. Even worse is when taxes begin to climb. Unfortunately, this is a fact of life for many of us. And, for those with cars, this is something to anticipate in April 2025. In line with this thought, today, we’re looking at some of the things you should know about upcoming tax hikes. This should help you decide whether it’s time to start saving up a little extra for your upcoming car tax bill, too.
The Upcoming Car Tax Increase: What We Know
From the first of April, it’s expected that an increase to the Vehicle Excise Duty will come into play. Of course, this isn’t much of a surprise, as annual increases have been seen in line with inflation since 2010. However, that doesn’t make it less worrying, and for owners of certain cars these tax increases will be stark.
The change will come into force from April 1st. And, critically, certain vehicles will increase to over £5,000 in annual taxes. Ouch. However, this won’t impact everyone, which is worth keeping in mind.
To check the current road tax prices for your car, you can run the registration plate through a vehicle check. Among other things, this history report will review over 80 data points, such as if the car is written off, on finance, or has any other issues.
Which Cars Will Be Affected?
The biggest car tax hikes are set for a number of particular vehicle types. It’s worth keeping in mind, the Chancellor also stressed that tax increases would differ between electric, hybrid, and combustion models. This comes as part of an effort to encourage more people to purchase costly EVs over traditional models.
Of course, one of the main issues with electric cars is their high purchase price. Fortunately, if you want to buy a second-hand EV to dodge some of the tax hikes, you can save lots. EVs depreciate very rapidly. As such, after just a few years, their price will often be more affordable. However, don’t get caught out by buying a deceptively cheap electric car. Instead, always do your research. Running a car history check first, for example, offers a simple way to check whether a seller is truthful. So, why take the risk?
Despite the Chancellor’s statement, the severity of the increase will likely surprise many. Indeed, it has been said that first year tax rates will double for many petrol, diesel, and even hybrid cars. This will certainly make it harder to afford to run a brand new vehicle of these types on the road. Contrastingly, new zero emission EVs will only pay a paltry £10. A good incentive to switch for new car buyers.
Some of the worst affected vehicles will be those with emissions of over 255g/km CO2. These include numerous models including those from Audi, Alfa Romeo, Aston Martin, Bentley, BMW, Chevrolet, Lotus, Jaguar, Lamborghini, Maserati, McLaren, and more.
Given these points, it’s going to be important for new car buyers to double check how their road tax will stand following the new changes. A Be sure to enquire about this before investing in a new vehicle to avoid sudden shocks. And, if you’re really concerned, investing in an electric car may be a way to avoid worrying tax hikes.
Full list of new cars producing over 255g/km of CO2
Volkswagen Amarok 3.0 TDI
Alfa Romeo Stelvio 2.9 V6 Bi-Turbo
Audi R8 5.2 FSI V10
Audi RS6 4.0 TFSI V8
Audi RS7 4.0 TFSI V8
Audi RSQ8 4.0 TFSI V8
Audi S8 4.0 TFSI V8
Audi SQ7 4.0 TFSI V8
Audi SQ8 4.0 TFSI V8
Aston Martin DB12 4.0 V8
Aston Martin DBX 4.0 V8
Aston Martin Vantage 4.0 V8
Bentley Bentayga 4.0 V8
Bentley Continental 4.0 V8
Bentley Continental 6.0 W12
Bentley Flying Spur 4.0 V8
BMW Alpina XB7 4.4 V8
BMW M8 4.4 V8
BMW X5 M 4.4 V8
BMW X6 M 4.4 V8
BMW X7 M 4.4 V8
Chevrolet Corvette Stingray 6.2 V8
Ferrari Purosangue 6.5 V12
Ferrari Roma 3.8T V8
Ford Mustang 5.0 V8
Ford Ranger 2.0 TD EcoBlue
Ford Ranger 3.0 EcoBlue
Ford Ranger 3.0 V6
INEOS Grenadier 3.0P
Jaguar F-Pace 5.0 P575 V8
Jeep Wrangler 2.0 GME
Lamborghini Huracan 5.2 V10
Lamborghini Urus 4.0 V8 BiTurbo
Lamborghini Revuelto 6.5 V12
Land Rover Defender 90 5.0 P425 V8
Land Rover Defender 110 5.0 P425 V8
Lotus Emira 3.5 V6
Maserati Levante 3.0 V6
Maserati Levante 3.8 V8
Maserati MC20 3.0 V6
McLaren GT 4.0T V8
Mercedes-Benz AMG GT 4.0 V8
Mercedes-Benz G400D
Mercedes-Benz G63
Mercedes-Benz GLC63
Mercedes-Benz GLE63
Mercedes-Benz GLS63h
Mercedes-Benz SL55
Porsche 718 Cayman 4.0 GT4
Porsche 911 3.7T 992 Turbo
Porsche Cayenne 4.0T V8
Porsche Macan 2.9T V6
Range Rover 4.4 P530 V8
Range Rover 4.4 P615 V8
Range Rover Sport 4.4P V8
Rolls-Royce Cullinan 6.75 V12
Rolls-Royce Ghost 6.75 V12
Toyota Hilux 2.8D
Toyota Land Cruiser 2.8D
