Toyota and Ford Face £5,690 Car Tax Hike in April
In a significant tax adjustment, drivers purchasing specific vehicles will face a first-year car tax hike of £5,690 starting April 1, 2026. This charge applies to 59 models across 24 manufacturers, including notable brands like Toyota and Ford.
Tackling Emissions with New Tax Rates
This increase in Vehicle Excise Duty (VED) is part of the UK government’s strategy to encourage the transition from petrol and diesel vehicles to electric alternatives. By imposing higher taxes on “higher polluting” cars, the government aims to make electric vehicles (EVs) more financially appealing.
Chancellor Rachel Reeves noted that this measure is crucial in raising awareness of the differences in emissions between traditional vehicles and electric models. The focus is on reducing carbon emissions as the nation looks to phase out the manufacturing of diesel cars by the 2030s.
Who Will be Affected?
- Porsche
- Lotus
- McLaren
- Lamborghini
- Toyota
- Ford
Premium brands will experience the most substantial financial burden, while more widely used vehicles from Ford and Toyota will also see significant impacts, driving up costs for many consumers.
Vehicle Excise Duty Rates Overview
The first-year tax amount is based on a vehicle’s carbon dioxide emissions. For reference, here are the new rates starting April 1, 2026:
| CO2 Emissions (g/km) | First-Year Tax (£) |
|---|---|
| 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 |
Future Implications
After the first year, the standard VED rate is currently set to rise to £200. However, the details may evolve as the government continues to refine its EV incentives and tax structures. As it stands, the VED adjustments reflect a broader commitment to reducing emissions and promoting sustainable vehicle options.
Drivers should prepare for these upcoming tax changes, particularly those considering vehicles that fall under the higher tax brackets. With this increase, the dynamics of car ownership in the UK will likely see considerable shifts, encouraging a transition to EVs.
