Drivers of two popular cars face £2,745 rise in car tax from April

The exact date a HUGE car tax rule change will see drivers pay £2,800 MORE each year has been revealed. After the new Labour Party government's Budget last Wednesday, documents from the government have confirmed new VED car tax bands.

With the new rates, the most polluting vehicles producing over 255g/km will see a whopping £2,745 increase from £2,745 to £5,490 - a hike of 100 per cent. This includes HGVs as well as two popular cars like the V8 Range Rover and Aston Martin Vantage.

Drivers are bracing for huge hikes in their road tax bills from next year. EVs will no longer escape with a zero first year rate for VED. From April they’ll pay the standard rate of road tax like everyone else, but with only a £10 annual charge being levied in year one.

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The budget briefing document says: “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.”

The government is providing longer-term certainty on favourable Benefit-in-Kind rates for EVs, currently the main driver for EV take-up in the UK, but it’s at the expense of hybrid drivers. The government stated: “Company Car Tax rates will continue to strongly incentivise the take-up of electric vehicles, while rates for hybrid vehicles will be increased to align more closely with rates for internal combustion engine (ICE) vehicles, to focus support on electric vehicles.”

These changes will be enacted on April 1 2025. First-year VED rates for cars emitting up to 50g/km and 75g/km of CO2 will rise to £110 and £130 respectively. Up until April 2025, buyers of those cars pay just £10 and £30 respectively.