A total of 59 luxury and high-performance vehicles are set to be hit with a staggering increase in Vehicle Excise Duty under the new Labour government. The tax hike will primarily affect new car buyers whose vehicles emit over 255g/km of CO2, with the rate skyrocketing by £2,745 to £5,490 annually. Starting from April 2025, the standard road tax rate will only rise with inflation, but those purchasing cars after this date will face substantially higher road tax bills if their vehicle's CO2 emissions exceed 75g per kilometre.
The government is doubling first-year road tax rates across all higher CO2 charging bands, aiming to raise £400m for the treasury next year and £1.7bn by the end of the decade, reports Birmingham Live . The budget briefing document states: "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.
" The list of affected cars is as follows: 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 .