The Autumn Statement in October 2024 saw the government announce some significant price increases on road tax rates - the hardest hit are high CO2 vehicles as the Chancellor continues the Road to Zero emissions policy by penalising those with higher CO2 vehicles.
From April 1, 2025, zero-emission models ie electric cars (that have been registered before this date), will have a first-year rate of just £10 until 2029/2030.
Cars emitting CO2 1-50g/km (it mainly plug in hybrids) will increase to £110.
Cars emitting CO2 51-75g/km will increase to £130.
Then the big doubling-up category. All cars emitting CO2 76g/km and above will double - ouch! So in effect, many petrol and diesel tax bands are set to double next year, with small, clean hatchbacks that make between CO2 76 to 90/km subject to a £270 charge, up from £135.
Zero emission vans will move to the rate for petrol and diesel equivalent vans which is currently £335 a year for the majority of current vans.
Expensive car supplement for electric cars - from 1/4/25 all zero emission vehicles priced over £40000 will incur the additional £410 per annum 'expensive car supplement charge' - this will be for five years from the start of the second licence.
Reprive for double cab pick up's - these will classified as a company car from April 2025 (vehicles ordered after that date) and although they were originally going to be classified as a car for road tax rates, the Treasury confined on 25/11/24 that double cab pick up's would still paid road tax rates as a LGV, which is currently £335 per year, rising to £245 per year in 2025/26.
Nevertheless, the drivers hit hardest by the tax increase will be buyers of new luxury and performance models purchased after April 2025, that produce more than 255g/km of CO2, with the road tax increasing by a staggering £2,745 to £5,490 per year. Pick up's were later announced to be treated as LCV's for road tax tax so they have avoided the huge road tax increase.
Here is the list of cars that will have the eye watering £5,490 per annum road tax. Remember if you are in the middle of a lease, you will be invoiced by your leasing funder for the additional cost of any road tax increases, this is normally a one off annual invoice.
- Alfa Romeo Stelvio 2.9 V6 Bi-Turbo
- Audi R8 5.2 FSI V10
- Audi RS6 4.0 TFSI V8
- Audi RS7 4.0 TFSI V8
- Audi RSQ8 4.0 TFSI V8
- Audi S8 4.0 TFSI V8
- Audi SQ7 4.0 TFSI V8
- Audi SQ8 4.0 TFSI V8
- Aston Martin DB12 4.0 V8
- Aston Martin DBX 4.0 V8
- Aston Martin Vantage 4.0 V8
- Bentley Bentayga 4.0 V8
- Bentley Continental 4.0 V8
- Bentley Continental 6.0 W12
- Bentley Flying Spur 4.0 V8
- BMW Alpina XB7 4.4 V8
- BMW M8 4.4 V8
- BMW X5 M 4.4 V8
- BMW X6 M 4.4 V8
- BMW X7 M 4.4 V8
- Chevrolet Corvette Stingray 6.2 V8
- Ferrari Purosangue 6.5 V12
- Ferrari Roma 3.8T V8
- Ford Mustang 5.0 V8
- INEOS Grenadier 3.0P
- Jaguar F-Pace 5.0 P575 V8
- Jeep Wrangler 2.0 GME
- Lamborghini Huracan 5.2 V10
- Lamborghini Urus 4.0 V8 BiTurbo
- Lamborghini Revuelto 6.5 V12
- Land Rover Defender 90 5.0 P425 V8
- Land Rover Defender 110 5.0 P425 V8
- Lotus Emira 3.5 V6
- Maserati Levante 3.0 V6
- Maserati Levante 3.8 V8
- Maserati MC20 3.0 V6
- McLaren GT 4.0T V8
- Mercedes-Benz AMG GT 4.0 V8
- Mercedes-Benz G400D
- Mercedes-Benz G63
- Mercedes-Benz GLC63
- Mercedes-Benz GLE63
- Mercedes-Benz GLS63h
- Mercedes-Benz SL55
- Porsche 718 Cayman 4.0 GT4
- Porsche 911 3.7T 992 Turbo
- Porsche Cayenne 4.0T V8
- Porsche Macan 2.9T V6
- Range Rover 4.4 P530 V8
- Range Rover 4.4 P615 V8
- Range Rover Sport 4.4P V8
- Rolls-Royce Cullinan 6.75 V12
- Rolls-Royce Ghost 6.75 V12
- Toyota Land Cruiser 2.8D.
So a summary for electric cars:
- If a new electric vehicle is registered by 31/03/25, the first year road tax is £0 and from the second year onwards it will be charged at £195 per year with NO additional expensive vehicle supplement if the car value exceeds £40,000 on-the-road price.
- If a new electric vehicle is registered from 1st April 2025 and the on-the-road list price is below £40,000, a £10 first year road tax will apply and then it will be charged at £195 per year from the second year.
If a vehicle is registered from 1st April 2025 and the vehicle EXCEEDS the £40,000 list price, the first year road tax will equate to £435.00 made up of £10.00 standard road tax plus £425 expensive vehicle supplement. From year two the total road tax will be £195 PLUS £425 expensive vehicle supplement for five years from the start of the second licence (the expensive vehicle supplement is currently £410, will rise to £425 on 1/4/25).
So try and get your newly leased electric vehicle before 31/3/25 as the rentals could see a very sizable jump thereafter. We have lots of electric cars in stock for delivery by 31/3/25 anywhere in the UK - if you have something specific contact us on 028 9693 6363 or email sales@everyvehiclelease.co.uk
Updated 3/1/25