April 1 Tax Hike: Cars Facing Increased Charges Revealed

Motorists driving vehicles with high CO2 emissions are set to be the most affected by new car tax increases next month. From April 1, the government is doubling the Vehicle Excise Duty (VED) for some new petrol, diesel, and hybrid cars. Chancellor Rachel Reeves announced the significant increase during last year's Autumn Budget.

Encouraging Shift to Zero-Emission Cars
It aims to encourage people to switch from petrol-guzzlers to zero-emission cars. The VED increase will widen the tax gap between zero-emission cars and those powered by internal combustion engines. This move aligns with the Government's environmental objectives of reducing carbon emissions and promoting sustainable transportation.

Tax Implications for Buyers
Buyers of new petrol, diesel, and hybrid vehicles can anticipate higher upfront costs due to increased first-year VED rates, reports the Express. However, electric car owners will only be charged a nominal VED rate, making these vehicles a more tax-efficient option in the long term.

Key Changes to VED Rates
The tax hike will impact 59 petrol and diesel models the most, including vehicles from manufacturers such as Audi, Bentley, Ferrari, Land Rover, and Porsche.