New car buyers stung an extra £417 on average for road tax next year when Labour's vehicle excise duty hikes arrive

Buyers of new petrol and diesel cars are set to feel the brunt of the Chancellor's widespread tax raid from next year. A new report has estimated that the result of the Chancellor's decision to DOUBLE Vehicle Excise Duty rates from 1 April will increase in taxation on new cars by an extra £417 on average The Chancellor said the government will change VED first year rates to 'strengthen incentives to purchase zero emission and electric cars, by widening the differentials between zero emission, hybrid and internal combustion engine cars' GoCompare car insurance crunched Department for Transport figures on the number of new private vehicles registered in the first half of the 2024 tax year. STEALTH TAX ON NEW PETROL AND DIESEL CARS FROM NEXT YEAR - HERE'S HOW MUCH FIRST-YEAR VEHICLE EXCISE DUTY WILL COST BUYERS Emissions CO2 2024-25 first-year VED rate 2025-26 first-year VED rate 0* £0 £10 1-50** £10 £110 51-75** £30 £130 76-90 £135 £270 91-100 £175 £350 101-110 £195 £390 111-130 £220 £440 131-150 £270 £540 151-170 £680 £1,360 171-190 £1,095 £2,190 191-225 £1,650 £3,300 226-255 £2,340 £4,680 Over 255 £2,745 £5,490 *only EVs **only plug-in hybrids Even small conventional hybrid cars will be stung by first-year tax rate increases. A Toyota Yaris hybrid, considered one of the greenest superminis on the market, can't escape - buyers of new models from 1 April will have to pay £350 for VED in the first year, up from £175 currently Families buying a modest Nissan Qashqai with a 1.3-litre mild hybrid petrol engine will incur first year VED costs of £540 from 1 April Buyers of a mild-hybrid diesel Range Rover that emits 194g/km CO2 will be hit with a showroom tax cost of £3,300 Performance cars will be stung very hard by the tax changes. of registered vehicles Increase per car Diesel £26,176,455 23,501 £1,114 Petrol £89,421,195 177,750 £503 Hybrid electric £44,401,920 135,563 £328 Other fuel types £277,420 1,061 £261 Plug-in hybrid electric £2,399,305 17,680 £136 Battery electric £288,820 28,864 £10 Source: Go.Compare Car Insurance calculation using DfT figures on the number of new private vehicles registered in the first half of the 2024 tax year Tom Banks, car insurance expert at Go.Compare, said: 'The increased VED rates mean most new car buyers will be paying a lot more than they were expecting in 2025, but there are ways you can minimise the impact this will have on your finances.