UK vehicle tax changes: higher VED rates and pickup exemptions
From April 1, UK VED rates rise, affecting most cars. Ford pickups avoid expensive car supplement with fixed £345 rate. Electric vehicles lose exemptions.
From April 1st, changes to the Vehicle Excise Duty (VED) come into effect in the UK, increasing the tax burden for most car owners. The standard rate for vehicles registered after 2017 will rise from £195 to £200, while the maximum first-year payment for models emitting over 255 g/km of CO2 jumps to £5,690.
This affects not only luxury models like the Ferrari Purosangue or Porsche Cayenne, but also certain versions of the Ford Mustang 5.0 V8 and Ranger 2.0 TD EcoBlue. The Expensive Car Supplement is also increasing, from £420 to £435.
However, Ford has highlighted a crucial detail: many of its pickups are classified as light goods vehicles (LGVs) rather than passenger cars. This exempts them from the Expensive Car Supplement and places them on a fixed annual VED rate of £345. This scheme applies to vehicles registered after March 1, 2001, including electric versions.
Meanwhile, electric vehicles are no longer exempt from VED, and a mileage-based payment system is planned for introduction from 2028. The rise in initial tax could significantly influence buyer decisions, particularly in the segment of powerful petrol and diesel models.