Annual Car Excise Obligation (VED) costs for dozens of petrol and diesel autos have greater than doubled over the previous 24 months amid ongoing price will increase. Model-new high-polluting fashions, particularly these emitting over 255g/km of CO2, have seen dramatic price surges in a brief timeframe.
Document First-12 months Tax Hikes
Excessive-performance autos now face steep first-year VED charges. Fashions emitting over 255g/km paid £2,745 within the 2024/25 tax 12 months. Coverage modifications doubled this to £5,490 final 12 months, with an extra £200 rise scheduled for April 1, 2026, pushing charges to £5,690 for vehicles registered after 2017.
Shahzad Sheikh, founder and presenter of the YouTube channel @BrownCarGuy, famous: “Vehicles registered after 2017 that emit over 255g/km of CO2 will now entice a first-year VED charge of £5,690. That’s a £200 inflation enhance for 2026/27. It comes on prime of a brutal rise that over a really quick interval has successfully greater than doubled the highest charge in comparison with the place it was simply a few years in the past. Round 60 vehicles now fall into this prime band. Sure, it contains the plain stuff: large V8s, high-performance SUVs, unique vehicles. However look intently and it additionally contains vehicles that till not too long ago have been probably seen as obtainable, sensible, possibly workmanlike.”
Affected Fashions from Main Manufacturers
Round 60 autos qualify for these prime charges, spanning luxurious and efficiency segments. Examples embody the Ford Mustang and Ford Ranger, Toyota Land Cruiser, Volkswagen Amarok, plus fashions from Audi, BMW, Ferrari, Mercedes, and Porsche.
Put up-First-12 months Prices
Homeowners pay the elevated first-year charge solely as soon as. Automobiles then shift to the usual annual VED of £195, set to extend to £200 this April resulting from inflation changes.
