From April 2025, taxing some petrol and diesel cars for their first year will hit an eye-watering £5,490 due to changes announced by Chancellor Rachel Reeves. Her Budget introduced a doubling of Vehicle Excise Duty (VED) for high-emission vehicles, in an effort to push drivers towards electric and hybrid cars.
The steepest tax hikes will target cars with CO2 emissions over 255g/km, categorising them into the highest VED band. Here’s a breakdown of 10 models that will be hardest hit:
1. Alfa Romeo Stelvio Quadrifoglio
- Price: £88,645
- CO2 emissions: 267g/km
- Tax: £5,490 (6.2% of price) This sporty SUV, powered by a 2.9L V6 bi-turbo engine, emits enough CO2 to place it firmly in the top tax bracket.
2. Ford Mustang
- Price: £55,725
- CO2 emissions: 274g/km
- Tax: £5,490 (9.9% of price) The latest Mustang V8, with its hefty emissions, will cost nearly £5,500 to tax in its first year.
3. Ford Ranger Tremor & Wildtrak X (2.0L diesel)
- Price: £42,660
- CO2 emissions: 270g/km
- Tax: £5,490 (12.9% of price) The Ranger’s pick-up status no longer exempts it from high passenger car VED rates, making it significantly more expensive to own.
4. Ineos Grenadier
- Price: £65,015
- CO2 emissions: 286g/km
- Tax: £5,490 (8.4% of price) Both petrol and diesel versions of this rugged SUV face the same hefty tax rate.
5. Jeep Wrangler Rubicon
- Price: £63,125
- CO2 emissions: 269g/km
- Tax: £5,490 (8.7% of price) Opting for a lower trim like the Sahara could reduce the tax, but it will still be steep.
6. Land Rover Defender V8
- Price: £93,445
- CO2 emissions: 316g/km
- Tax: £5,490 (5.9% of price) The Defender’s V8 option pushes emissions into the highest tax band.
7. Land Rover Range Rover V8
- Price: £142,400
- CO2 emissions: 261g/km
- Tax: £5,490 (3.9% of price) For buyers spending six figures, this first-year tax may feel minor in comparison.
8. Maserati Levante V6
- Price: £115,215
- CO2 emissions: 282g/km
- Tax: £5,490 (4.8% of price) This luxury SUV’s emissions guarantee it falls into the highest tax bracket.
9. Porsche Cayenne
- Price: £76,000
- CO2 emissions: 275g/km
- Tax: £5,490 (7.2% of price) Higher trims or larger wheels on the Cayenne could push emissions into the top bracket.
10. Porsche Macan S/GTS
- Price: £63,000
- CO2 emissions: 265g/km
- Tax: £5,490 (8.7% of price) Petrol versions of the Macan will be costly to tax, while electric models avoid this hike entirely.
Tax Policy in Detail
Under the new rules:
- Zero-emission cars will pay just £10 in first-year VED until 2030.
- Plug-in hybrids (1–50g/km CO2) will pay £110, and slightly less efficient hybrids (51–75g/km CO2) will pay £130.
- Petrol and diesel vehicles with emissions over 191g/km will see first-year VED rates double, making the most polluting cars much more expensive to own.
The changes aim to incentivise a shift to greener vehicles, but critics argue they punish those unable to afford electric cars. Experts like the RAC have warned it could lead to drivers holding onto older, more polluting cars for longer.
This policy is expected to raise £400 million annually for the Treasury but will significantly impact buyers of high-emission cars, with VED rates doubling for almost every non-electric model.
