A total of 59 luxury car models are set to be hit with a massive £2,000 increase in Vehicle Excise Duty (VED) under the new Labour government. The tax hike will affect new high-performance vehicles emitting over 255g/km of CO2, with the rate soaring by £2,745 to £5,490 annually. From April 2025, the standard road tax rate will rise in line with inflation, but new car buyers will face a significantly higher bill if their vehicle exceeds the 75g/km CO2 threshold.
The government is doubling first-year road tax rates across all higher CO2 bands, aiming to raise £400m for the Treasury next year and £1.7bn by the end of the decade, reports Birmingham Live. The budget 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.
" READ MORE: Five major Budget 2024 tax changes announced and how they will affect you Full list of new cars producing over 255g/km of CO2 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 B.
