Buyers of high-emission vehicles in the United Kingdom face the steepest showroom tax in the scheme's history for the 2026-27 financial year. Vehicles emitting 255 grams of CO2 per kilometre or more attract a first-year Vehicle Excise Duty charge of £5,690, making the opening year of ownership significantly more expensive for drivers who choose gas-guzzling vehicles over more efficient alternatives. This rate applies to around 60 popular models currently on sale in the United Kingdom, including several high-profile performance cars and large SUVs that remain best-sellers in their respective segments.
The first-year VED rates are determined by the vehicle's CO2 emissions band, with zero-emission vehicles paying nothing while the highest emitters face the maximum charge. For context, a vehicle emitting 255g/km CO2 and priced at £50,000 would face a first-year VED bill of £5,690, plus the standard first-year rate for its emissions band and the Expensive Car Supplement if the list price exceeds £50,000. Over five years, the total VED cost for such a vehicle can easily exceed £8,000, compared to £0 for a pure electric vehicle.
How the First-Year VED Structure Works
Vehicles in the United Kingdom are assigned to CO2 emission bands ranging from £0 for zero-emission vehicles to £5,690 for those in the highest band. The first-year rates reflect the environmental impact of the vehicle, with higher-emitting cars paying substantially more to reflect the greater cost they impose on the environment and the road network. These rates are calculated on the Vehicle's CO2 emissions figure recorded on its Certificate of Conformity, which is measured using the WLTP testing procedure.
From the second year onwards, all vehicles pay a standard rate of VED, which is currently £165 per year for most vehicles. Electric vehicles and vehicles emitting less than 90g/km CO2 pay a reduced rate, while vehicles with a list price above £40,000 pay an additional Expensive Car Supplement of £440 per year for the first five years. These ongoing costs compound the first-year showroom tax disadvantage faced by high-emission vehicles.
Cars That Face the £5,690 Showroom Tax
The vehicles facing the maximum first-year rate of £5,690 span several categories, from iconic sports cars to practical family SUVs. The Land Rover Defender 110, a perennial favourite among British buyers seeking off-road capability and family practicality, emits 265g/km CO2 in its most powerful configuration and falls squarely into the highest band. The Mercedes-AMG G63, with its twin-turbo V8 engine producing 384g/km CO2, faces the highest absolute road tax burden of any vehicle sold in the United Kingdom today.
Performance car enthusiasts will find that the BMW M division's most powerful models fall into the highest tax band. The BMW M5 Competition produces 281g/km CO2, the Porsche 911 Turbo S emits 269g/km CO2, and the Audi RS6 Avant produces 268g/km CO2, all triggering the £5,690 first-year rate. These vehicles represent the pinnacle of their respective manufacturers' performance capabilities, but buyers should factor the showroom tax into their total cost of ownership calculations.
The Total First-Year Cost Example
Consider the total first-year road tax burden for a popular high-emission vehicle. A Mercedes-AMG G-Class priced at approximately £185,000 attracts the maximum first-year VED of £5,690, the first-year additional rate for its CO2 emissions, and the Expensive Car Supplement of £440. The total first-year VED bill for this vehicle reaches £7,110 before accounting for the standard first-year rate. Over five years of ownership, the total VED cost including the Expensive Car Supplement totals approximately £9,810.
By contrast, a pure electric vehicle such as a Tesla Model Y at approximately £50,000 attracts £0 in first-year VED and £0 in ongoing road tax, as zero-emission vehicles are fully exempt from Vehicle Excise Duty. Over five years, the electric vehicle owner pays nothing in road tax, representing a saving of nearly £10,000 compared to the Mercedes G-Class buyer. This differential highlights the significant financial advantage of choosing electric over high-emission alternatives.
How to Reduce Your Road Tax Burden
For buyers determined to purchase a high-emission vehicle, there are limited options for reducing the road tax burden. Choosing a lower-specification model with reduced CO2 emissions may move the vehicle into a lower VED band, potentially saving hundreds or thousands of pounds in first-year charges. Some manufacturers offer plug-in hybrid variants of their high-emission models, which produce significantly lower CO2 emissions and qualify for substantially reduced VED rates.
Buying a used vehicle can also reduce VED costs, as the first-year rates only apply to vehicles in their first year of registration. A three-year-old vehicle emitting 260g/km CO2 will pay the standard rate of £165 per year rather than the first-year rate of £5,690, representing a substantial saving. The Expensive Car Supplement may still apply if the original list price exceeded £40,000, but this represents a much smaller ongoing cost than the first-year rate.
For the full VED rate table and to check your vehicle's emissions band, visit gov.uk/vehicle-tax-rate-tables.
Disclaimer: VED rates are set annually by HM Treasury and are subject to change. CO2 emissions figures are based on WLTP testing. Always verify current VED rates and your vehicle's specific emissions band at gov.uk before purchasing.