59 Cars, Including Mercedes & BMW, to Face £5,690 Tax in April 2026
In April 2026, a total of 59 high-emission vehicles from 24 manufacturers will incur substantial taxes, with a first-year Vehicle Excise Duty (VED) charge set at £5,690. This change primarily affects luxury brands such as BMW, Mercedes, and Ford amidst a broader governmental shift in tax policy aimed at promoting electric vehicle adoption.
Significant Tax Hike for High-Emission Vehicles
The increase in VED follows substantial adjustments made last year. Buyers of petrol and diesel vehicles will encounter first-year tax liabilities that have nearly doubled compared to rates from 2024. Motors exceeding 255 g/km of CO2 emissions are particularly affected.
Details on Vehicle Excise Duty Changes
The first-year VED charges rose sharply, leading to a new base rate of £5,490 for vehicles with high emissions. This will further escalate to £5,690 as of April 1, 2026. The government’s intention behind this increase is to encourage a transition to electric vehicles, widening the disparity between conventional engines and greener options.
The table below summarizes the anticipated VED rates for various emission bands starting April 1, 2026:
| CO2 Emission (g/km) | First-Year VED (£) |
|---|---|
| 0 | 10 |
| 1-50 | 115 |
| 51-75 | 135 |
| 76-90 | 280 |
| 91-100 | 365 |
| 101-110 | 405 |
| 111-130 | 455 |
| 131-150 | 560 |
| 151-170 | 1,410 |
| 171-190 | 2,270 |
| 191-225 | 3,420 |
| 226-255 | 4,850 |
| Over 255 | 5,690 |
Luxury Vehicle Impact
Luxury brands such as Audi, Porsche, and Lamborghini are among those hit hardest by this tax adjustment. Noteworthy models facing the imminent tax increase include:
- Audi RS6 4.0 TFSI
- Mercedes-Benz SL55
- Lamborghini Urus 4.0 V8
- Ford Mustang 5.0 V8
Government Rationale and Future Considerations
Chancellor Rachel Reeves introduced these tax measures to facilitate a shift towards electric vehicles. Currently, electric vehicles are exempt from VED for their first year, underscoring the government’s push towards greener transportation options.
Additionally, a planned distance-based levy for electric vehicles, set to activate in April 2028, will charge drivers based on mileage. This initiative aims to recoup revenue lost from decreasing fuel duties.
In conclusion, the sweeping changes to VED represent a significant policy shift that will impact a wide range of vehicle owners, particularly those purchasing high-emission models, as the market continues its gradual transition to electric alternatives.
