How much will the 10 most popular new cars cost to tax next year thanks to Labour changes?
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Car tax changes introduced in April will see the cost of first-year Vehicle Excise Duty (VED) for all new petrol and diesel models double, stinging the most polluting cars with an annual charge as high as £5,490. The tax raid on new combustion engine motors was confirmed in Rachel Reeves' Autumn Budget in October.
The Chancellor said VED (commonly referred to as road tax or car tax) first-year rates for cars registered after 1 April 2025 will be adjusted to 'strengthen incentives to purchase zero emission and electric cars, by widening the differentials between zero emission, hybrid and internal combustion engine cars'.
However, the supporting Budget document revealed that Ms Reeves' plot to extend the tax gap to greener vehicles would be achieved by doubling first-year VED rates - also known as 'showroom tax' - for petrol, diesel and many hybrid cars while costs for new EVs will rise from zero to just £10.
Experts have labelled it a stealth tax on new petrol and diesel cars and a 'shove, not a nudge' towards EV uptake. So, how will these new rules impact the nation's most popular new cars?. These are the 10 best sellers of 2024 (up to the end of November) and the spread of first-year road tax costs from 1 April 2025.
The priciest will cost £3,300 to tax for 12 months. 2024 registrations: 27,674. CO2 emissions: 116 - 149g/km. First-year tax costs: £440 - £540. The Volkswagen Polo will be subject to an increase in VED showroom tax of between £220 and £270 across the current model line-up from 1 April 2025.