ALL YOU NEED TO KNOW AS SOME DRIVERS FACE £5,690 CAR TAX
All you need to know as major car tax hike hits many UK motorists:
A staggering 59 vehicles across 24 different manufacturers will face a whopping £5,690 first-year Vehicle Excise Duty charge from April 2026.
The Government has dramatically increased VED rates for petrol and diesel cars, with the highest emission vehicles bearing the brunt of the changes. Cars emitting more than 255g/km of CO2 will see charges rise from £2,745 to £5,690, affecting popular brands including Ford, BMW, Mercedes, and luxury marques like Porsche and McLaren.
Chancellor Rachel Reeves announced the policy to push drivers towards electric vehicles, stating: "To help drive the transition to electric vehicles the government is strengthening incentives to purchase EVs by widening the differentials in Vehicle Excise Duty First Year Rates between EVs and hybrids or internal combustion engine cars." Electric vehicles continue to benefit from minimal charges of just £10 for first-year VED.
The changes follow a tiered system, with fees approximately doubling from 2024 levels. A Treasury spokesman revealed that a Ford Puma's first-year VED will leap from £220 to £440, while luxury vehicles like Range Rovers will jump from £2,745 to £5,490.
From April 2028, electric vehicles will face a new 'mileage tax' of 3p per mile to compensate for lost fuel duty revenue. John Cassidy from Close Brothers Motor Finance warned: "A pay-by-mile scheme for electric vehicles risks increasing costs for many drivers, particularly those who rely on their cars for higher annual mileage."
The luxury car tax threshold will rise to £50,000 for electric vehicles while remaining at £40,000 for petrol and diesel cars, adding an extra £425 annually for five years on qualifying vehicles.
Classic cars over 40 years old and vehicles for disabled drivers remain exempt from these increases.
Full list of 59 cars emitting over 255 g/km has been released: