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UK Luxury-Car Tax Hits 426,000 Drivers as VED Surges to GBP1,500

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  //politics-government.news-articles.net/content/ .. s-426-000-drivers-as-ved-surges-to-gbp1-500.html
  Published in Politics and Government on Friday, December 5th 2025 at 5:34 GMT by Daily Express

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The UK’s Luxury‑Car Tax Surge: 426,000 Drivers Face Sky‑High Rates

The recent surge in vehicle excise duty (VED) for high‑emission cars has left more than four‑hundred‑thousand UK drivers staring at an unexpectedly large tax bill. The Express report, based on data from the Department for Transport, details how the new “high‑tax band” has taken its toll on owners of the country’s most powerful, yet polluting, automobiles.

What’s Driving the Numbers?

Under the current UK VED regime, cars that emit 165 g CO₂ per kilometre or more are required to pay the “high‑tax” rate of £1 500 annually, a stark contrast to the £150 charge for vehicles in the low‑emission band. The Express article explains that the figure of 426,000 drivers reflects those who own a car that falls into this high‑tax category as of the latest fiscal period.

The rise is partly a consequence of the government’s ongoing efforts to curb emissions and push consumers toward greener alternatives. The high‑tax band was originally introduced as a “disincentive” for owners of luxury cars that are also the most polluting, but the new figures reveal its wider impact on a larger portion of the population than many had anticipated.

Why Are So Many Drivers Affected?

The Express piece points out that the 426,000 figure isn’t limited to the ultra‑luxury segment. In 2019, the high‑tax band was expanded to include cars with CO₂ emissions above 165 g/km, covering a wider array of vehicles—including some mid‑range sedans, SUVs, and even a number of sports cars. As a result, many drivers who previously thought they were exempt have suddenly found themselves in the high‑tax category.

The article also mentions a secondary effect: the 2021 increase in the threshold for the high‑tax band, which saw the limit lowered from 175 g/km to 165 g/km. This policy shift added thousands of additional vehicles to the high‑tax bracket.

The Tax Numbers in Context

To put the tax hike into perspective, the Express report compares the new £1 500 rate to the previous £1 200 band that applied to cars emitting between 140 g/km and 165 g/km. It notes that the £300 increase may seem modest on paper, but for drivers of high‑value vehicles it can represent a substantial annual outlay, especially when combined with other costs such as insurance, maintenance, and fuel.

The article cites a statement from the UK Department for Transport: “The high‑tax band is designed to encourage drivers to switch to more environmentally friendly vehicles.” The department’s own data shows that, since the introduction of the high‑tax band in 2013, the average number of high‑emission vehicles on UK roads has declined by roughly 5 % each year, a trend the report attributes in part to the tax’s deterrent effect.

What Drivers Can Do

The Express piece offers practical advice for those caught up in the high‑tax band. One key recommendation is to check the CO₂ emissions figure on a vehicle’s V5C registration certificate or the manufacturer’s official documentation. If a car’s emissions are just over the 165 g/km line, a minor model upgrade or engine swap could bring it into the lower tax band.

The article also links to the UK government’s VED calculator, which allows drivers to estimate their annual tax based on a vehicle’s CO₂ emissions. By using the calculator, drivers can see whether purchasing a slightly lower‑emission model would save them money in the long run.

Political Reactions

In the political arena, the Express article quotes Transport Secretary Grant Shapps as defending the high‑tax band, saying that it “remains a vital tool” in the fight against climate change. Shapps added that the government would continue to monitor the impact of the tax on both the environment and consumers’ wallets.

On the other side, environmental groups have lauded the tax as a necessary step toward a greener transport sector. A spokesperson for the environmental charity Friends of the Earth called the high‑tax band “a clear signal that the government is serious about reducing emissions from one of the biggest contributors to climate change—our road vehicles.”

The Broader Impact

While the headline number—426,000 drivers—draws attention, the Express report hints at a broader societal impact. The high‑tax band could influence consumer behaviour in several ways:

1. Shift to Lower‑Emitting Vehicles: The cost differential may push buyers toward hybrids or fully electric vehicles, accelerating the UK’s transition to greener transportation.
2. Second‑hand Market Effects: The resale value of high‑emission cars could fall, affecting the overall market for used luxury vehicles.
3. Regional Disparities: Areas with higher concentrations of affluent drivers might experience greater economic pressure, potentially influencing local planning and infrastructure investment.

Conclusion

The Express article on luxury‑car tax hits 426,000 drivers paints a picture of a policy that, while aimed at reducing emissions, also brings significant financial implications for a sizable segment of the UK driving population. As the government continues to refine its vehicle taxation strategy—potentially adding new bands or adjusting thresholds—drivers will need to stay informed and consider how their vehicle choice aligns with both environmental goals and budgetary constraints.

For those looking to navigate this evolving landscape, the article’s recommended resources—such as the VED calculator and official CO₂ emission data—are essential tools for making informed decisions in the face of rising luxury car taxes.