Thousands of UK drivers could soon see their vehicle tax bills rise significantly, with owners of 54 classic and high-emission cars facing steep increases from April 2025.
The upcoming Vehicle Excise Duty (VED) changes will impact nearly all petrol and diesel car owners, with first-year VED rates doubling.
Older cars registered between 1984 and 2001 will see smaller increases, but those with more powerful engines will face a higher financial burden.
Experts warn that drivers of vehicles in the lower power bracket will pay £220 in 2025/26, up from £210, while those with engines above 1549cc will see their tax rise from £345 to £360.
The most polluting cars—emitting over 255 g/km of CO2—will be hit hardest, with an increase of £2,745.
A range of high-end vehicles, including Audis, Volkswagens, Lamborghinis, and Jaguars, will be affected. Some of the most impacted models include:
Audi RS6 4.0 TFSI V8
Lamborghini Huracan 5.2 V10
Ford Mustang 5.0 V8
Porsche 911 3.7T 992 Turbo
Mercedes-Benz G63
Rolls-Royce Ghost 6.75 V12
Diesel and Hybrid Cars Hit Hardest
Diesel car owners will face the steepest increases, with an average rise of £1,113—nearly double the hike for petrol vehicles.
Hybrid car buyers will also feel the impact, with tax costs rising by an average of £135 to £327, depending on the model.
From April 2025, electric vehicle (EV) drivers will no longer benefit from the current tax exemption for their first year. This change is part of the government’s plan to ensure all vehicles contribute to road maintenance and public infrastructure.
HM Revenue and Customs (HMRC) confirmed that VED increases will align with inflation, similar to last year’s adjustments. The tax hikes aim to reflect the environmental impact of fossil-fuel vehicles while gradually integrating zero-emission cars into the taxation system.
