Shake-up could see UK motorists face a 2,475% increase to tax that new green hybrid
The cost of taxing a new car bought after this weekend could rise by up to 25 times – with even some environmentally-friendly plug-in hybrids incurring eye-watering increases.
New laws will see some higher end hybrids hit with rises in vehicle excise duty rates of up to 2,475%.
And six out of the ten best-selling marques are among the highest risers, and include the Vauxhall Astra, Ford Focus, Audi A3 and BMW 340i.
Analysis by leading trade magazine What Car? shows it is conventional hybrids such as the Lexus GS300h and RX450h that will be hit hardest, however.
These have traditionally been an attractive option for those seeking a luxury car with small-car emissions, because under the outgoing legislation, the GS300h costs owners as little as £20 to tax over three years and the RX450h £40. Under the new rules, however, that increases to £1,010 and £1,030, respectively.
Top 10 tax increases
Make/Model | Segment | Fuel type | Cost of tax for three years – 2016/17 | Cost of tax for three years – 2017/18 | Cost increase over three years | Percentage Change over three years |
Lexus RC 300h 2.5 F-Sport 2dr CVT Auto | Coupe | Petrol Hybrid | £40 | £1,030 | £990 | 2475% |
Mercedes-Benz C250d AMG Line Premium 2dr Auto | Coupe | Diesel | £60 | £1,060 | £1,000 | 1667% |
Mercedes-Benz CLA 45 4Matic Yellow Night Edition 4dr Tip Auto | Coupe | Petrol | £60 | £1,060 | £1,000 | 1667% |
Lexus RX 450h 3.5 SE 5dr CVT Auto | Large SUV | Petrol Hybrid | £40 | £1,030 | £990 | 2475% |
Audi A6 3.0 TDI S Line 4dr S Tronic | Executive | Diesel | £60 | £1,060 | £1,000 | 1667% |
Mercedes-Benz C250d AMG Line Premium Plus 4dr 9G-Tronic | Executive | Diesel | £60 | £1,060 | £1,000 | 1667% |
Mercedes-Benz E200d AMG Line Premium 4dr 9G-Tronic | Executive | Diesel | £60 | £1,060 | £1,000 | 1667% |
Lexus GS300h 2.5 F-Sport 4dr CVT | Executive | Petrol Hybrid | £40 | £1,030 | £990 | 2475% |
Audi A5 2.0 TDI Sport 2dr S Tronic | Convertible | Diesel | £60 | £1,060 | £1,000 | 1667% |
Mercedes- Benz C220d AMG Line 2dr | Convertible | Diesel | £60 | £1,060 | £1,000 | 1667% |
Only zero-emissions cars costing less than £40,000 will be free to tax, but buyers still have a few days to make significant savings by purchasing before the 1 April deadline.
“The new tax laws are designed to increase the advantage of running a zero emissions car, but they make things much more complicated and push up the price of many ‘bread and butter’ models,” said What Car? editor Steve Huntingford.
“Buyers still have a small window to snap up a bargain before 1 April, and there are a number of grants for plug-in hybrids at their disposal.”
UK top sellers
Make/Model | Type | Model’s overall UK sales chart position* | Fuel | Cost of tax for three years – 2016/17 | Cost of tax for three years – 2017/18 | Cost increase over three years | % Change over three years** |
Vauxhall Astra 1.0T 12V ecoFLEX Design 5drEasytronic | Hatchback | 3 | Petrol | £0 | £400 | £400 | N/A |
Ford Focus FOCUS 1.5TDCi 120 ST-Line Navigation 5dr Powershift | Hatchback | 4 | Diesel | £0 | £400 | £400 | N/A |
Nissan Qashqai 1.5 dCiAcenta [Comfort Pack/Tech Pack] 5dr | Small SUV | 5 | Diesel | £0 | £400 | £400 | N/A |
Mercedes-Benz C350e Sport Premium 4dr Auto | Executive | 6 | Petrol Hybrid | £0 | £895 | £895 | N/A |
Audi A3 1.6 TDI SE 5dr S Tronic | Hatchback | 8 | Diesel | £0 | £400 | £400 | N/A |
BMW 340i M Sport 5dr Step Auto [Business Media] | Executive | 10 | Petrol | £555 | £1,400 | £845 | 152% |
In the case of the GS300h hybrid, the near-£1,000 rise in the three-year tax bill is made up of a £150 first-year rate based on its CO2 emissions, followed by two subsequent payments of the new hybrid flat rate of £130 per year, which applies to all vehicles with emissions above 0g/km CO2.
In addition, all vehicles that cost more than £40,000 are subject to a further £310 a year charge between years two and six.
As a result, three-year tax bills on the Porsche Cayenne E-Hybrid, Mitsubishi Outlander PHEV and Volvo XC90 T8 and Audi Q7 E-tron will also jump from zero to as much as £1,000.
On the up side, the Audi, Mitsubishi and Volvo remain eligible for a government grant of £2,500 thanks to their low CO2 emissions of less than 75g/km, and if buyers order before the tax rise they could save almost half as much again.
Hybrid tax increases
Make/Model | Segment | Fuel type | Cost of tax for three years – 2016/17 | Cost of tax for three years – 2017/18 | Cost increase over three years | Percentage Change over three years** |
Lexus RX 450h 3.5 SE 5dr CVT Auto | Large SUV | Petrol Hybrid | £40 | £1,030 | £990 | 2475% |
BMW X5 xDrive40e SE 5dr Auto | Large SUV | Petrol Hybrid | £0 | £970 | £970 | N/A |
Porsche Cayenne S E-Hybrid 5dr Tiptronic S | Large SUV | Petrol Hybrid | £0 | £895 | £895 | N/A |
Audi Q7 3.0 TDI Quattro e-tron 5dr Tip Auto | Large SUV | Diesel Hybrid | £0 | £880 | £880 | N/A |
Mitsubishi Outlander 2.0 PHEV 4hs 5dr Auto | Large SUV | Petrol Hybrid | £0 | £880 | £880 | N/A |
Volvo XC90 2.0 T8 Hybrid Inscription 5dr Geartronic | Large SUV | Petrol Hybrid | £0 | £880 | £880 | N/A |
Motorists who bought one of Britain’s top sellers in the first months of 2017 are also likely to have avoided a hefty tax premium and could still do so if they move quickly.
Six of 2017’s top 10 sellers are among the highest risers. Certain derivatives of the Vauxhall Astra, Ford Focus, Nissan Qashqai, Mercedes C-Class, Audi A3 and BMW 3-Series will command an extra tax bill of between £400 and £1,000 over three years.