Owners of luxury and high-performance vehicles might need to hit the brakes as they face a significant increase in vehicle excise duty. A newly released list has identified 59 f uel-thirsty cars that will be hit with a £2,000 road tax rise. Starting April 2025, cars emitting over 255g/km of CO2 will bear the brunt of the hike.
On the other hand, standard road tax rates are expected to rise only slightly in line with inflation. Buyers considering a new car post-April 2025 with emissions exceeding 75g per kilometre of CO2 should prepare for a hefty road tax bill. The first-year road tax is where the impact will be most felt, potentially seeing rates double for those in the higher CO2 bands.
These aggressive tax strategies are projected to generate £400m next year, with a staggering £1.7bn expected to flow into government funds by the end of the decade, according to Birmingham Live, reports the Mirror . However, there's a glimmer of hope for owners of zero-emission vehicles.
The budget briefing document suggests a smoother transition may be on the horizon: "The government recognises the disproportionate impact of the current VED Expensive Car Supplement threshold for those purchasing zero-emission cars and will consider raising the threshold for zero-emission cars only at a future fiscal event, to make it easier to buy electric cars." Highlighted below are the vehicles that will be subject to the increased first-year road tax in the higher CO2 band. Alfa Romeo Stelvio 2.
9 V6 .