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10 December 2024, 16:08
A host of popular vehicles from brands like BMW, Ford and Mercedes are set to face a £2,745 tax hike following new rules brought in by Labour’s autumn budget.
59 cars in total will be hit with the hike come April 2025 following changes in Vehicle Excise Duty (VED) rates.
These VED fees will be paid by owners of new petrol and diesel vehicles before they eventually switch to a standard rate.
Some drivers will see their fees double from the current 2024 rates.
Cars producing 255 g/km of CO2 will be subject to the £2,745 increase - with even some popular Ford and Toyota cars facing the hike.
But it will be luxury motors facing the largest price increases with Porsche, Lotus, Lamborghini, and McLaren all expected to be impacted.
These changes come as Labour looks to encourage the use of electric vehicles by taxing the amount of CO2 a car produces.
Currently, owners of electric vehicles don’t pay VED but this will change in April when a £10 fee will be introduced.
Speaking during her autumn Budget, Rachel Reeves said: "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.
"The government is also maintaining EV incentives in the Company Car Tax regime and extending 100% First Year Allowances for zero emission cars and EV charge points for a further year."
The Budget document added: "From 1 April 2025, the Vehicle Excise Duty first-year rates will be changed to widen the difference between zero-emission, hybrid and internal combustion engine cars."