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The best cars that produce less than 76 g/km CO2: Avoid the VED tax hike with these cars

  • Showroom tax has doubled for cars that emit more than 76g/km CO2
  • The best cars that slip in below that crucial threshold that aren't EVs
  • From hatchbacks to sports cars, these plug-in hybrids will cost a maximum of £130

Written by Ryan Gilmore Published: 5 November 2024

First Year Rates for Vehicle Excise Duty are going up from April 2025. Now, only electric vehicles (EVs) will be eligible for the lowest £10 rate, so even if you’re buying a hybrid, you will be paying more tax.  Vehicle Excise Duty is based on emissions, and the more carbon dioxide per kilometre (CO2 g/km) a car produces, the more it’ll pay in tax, broken down into thresholds.

The new rates will be £10 for a zero emission vehicle, £110 for a car that emits between 1-50 g/km of CO2, and £130 for cars that emit 51-75 g/km of CO2.

The biggest cost increase will be for a car that produces over 76 g/km of CO2. Prices are doubling for First Year Rates. To put that into perspective, a tiny new Suzuki Swift (99 g/km of CO2) will have its First Year Rate doubled, just like a behemoth Mercedes-Benz G 63 AMG (369 g/km CO2). While the tax you’ll pay on these cars will be different (you can view the full First Year Rates below), it points to an increasing hostility to petrol and diesel cars.

There’s no way of getting around it. Buy a new car with any engine from April 2025, and you’ll pay at least £110 on First Year VED. The £10 First Year Rate will only apply to EVs, so even the most electrified plug-in hybrids will cost a lot more than before. For those not ready or wanting to commit to a full EV, we’re breaking down the best low-emission new cars that won’t attract the doubled tax rate.

The best new cars that produce less than 76 g/km of CO2

£110 First Year Rate

Expert rating:

4.0
The figures for the latest Golf speak for themself. Opt for the plug-in hybrid, and you’ll get a whopping 88 miles of EV range and an official CO2 figure of just 6 g/km. That's thanks to the combination of a 14.7 kWh battery with a frugal 1.5-litre petrol engine.

It gets better too; the latest Volkswagen Golf fixed a lot of what made the last one such a disappointment. The infotainment system is a lot better than before, and the build quality is better, too. As the de facto hatchback of choice, it’ll perform family duties with ease, and it’s not half-bad to drive either.

To find out more, read our full Volkswagen Golf review

Pros

  • PHEV is one of the best around
  • Infotainment screen is so much better now
  • Build quality is top-notch

Cons

  • PHEV steals some boot space
  • Other hatchbacks offer better handling

£110 First Year Rate

Expert rating:

4.5
As box-ticking exercises go, the BMW 330e tops the ranks. It has a premium feel and badge to get the neighbours talking. There’s a saloon or load-lugging estate, and the plug-in hybrid system ensures it produces just 25g/km CO2.

Some cars will go further on EV power alone, but the 330e is more desirable. It’s an excellent car to drive, fast and fun when needed, before settling down into an efficient long-distance cruiser. It’s simply an unmissable consideration for anyone in the market for a new car.

To find out more, read our full BMW 330e review

Pros

  • Balances performance and economy perfectly
  • Enjoyable to drive
  • Nice interior

Cons

  • M Sport ride is crashy
  • PHEV nicks boot space

£110 First Year Rate

Expert rating:

4.0
The car that jump-started the hybrid craze is back and now more desirable than ever. The fifth-generation Prius swaps a self-charging hybrid model for a plug-in hybrid drivetrain, now producing just 17g/km of CO2.

It looks a lot nicer than before, and the interior is slicker too. It’s gone from frugal and unkillable minicab fodder to a desirable family car in one fell swoop. Expect that effortless economy and unshakeable reliability to continue in this generation too. It even squeaks in under the £40,000 luxury car surcharge too.

To find out more, read our full Toyota Prius review

Pros

  • Effortlessly refined, smooth performance
  • Excellent efficiency
  • Stands out from the crowd

Cons

  • Interior lacks design flair
  • Small model range

£110 First Year Rate

Expert rating:

4.0
There are two reasons to include the smart-looking Astra on this list. The first is that the PHEV is a nice car, offering a pair of engines to choose from (180 and 225hp) and generous standard equipment. In Sport Tourer (estate) form, it's big and roomy, too, even if the battery takes up some boot space. Finance and leasing deals for an Astra offer exceptional value for money, too.

The second reason we're choosing it is to highlight the price difference between a car that falls below the threshold and one that doesn't. All PHEV Astras will have to pay £110 First Year VED. An equivalent petrol-only example will cost you an eye-watering £440.

To find out more, read our full Vauxhall Astra review

Pros

  • Smart-looking car
  • Good level of standard equipment
  • Solid build quality throughout

Cons

  • Battery robs boot space
  • PHEV loses a step with handling

£110 First Year Rate

Expert rating:

4.0
The old Niro was a nice but plain SUV, offering plenty of space and refinement but equal measures of blandness. The new one, with sharper styling and remarkable standard equipment, makes for a compelling small SUV, especially in plug-in hybrid spec.

Like most PHEVs, boot space is reduced against the standard hybrid model, down to 348 litres. But with a cavernous interior and clever storage solutions, it'll work exceptionally well as a family car. Then there's the 18 g/km CO2, which keeps First Year Rates in the lowest band for non-EVs.

To find out more, read our full Kia Niro review

Pros

  • Efficient hybrid options
  • Good interior space and quality
  • Long warranty

Cons

  • Handling isn't the best in its class
  • Hard ride at low speeds

£110 First Year Rate

Expert rating:

4.0
A 4.0-litre V8 Porsche Panamera Turbo E-Hybrid on a low emissions list may sound like a joke, but we’re committed to showing the wide (and unexpected) variety of cars that’ll sit happily in these low VED brackets.

Thanks to a 25.9 kWh battery and up to 57 miles of pure electric driving, a Panamera Hybrid registers at just 39g/km of CO2. That’s correct, a 680 hp sports saloon will cost you just £110 in showroom tax. Need some extra room? Select a plug-in Cayenne and you’ll again fall below the 76 g/km threshold.

To find out more, read our Porsche Panamera review

Pros

  • Agile for big car
  • End-end interior
  • Excellent plug-in hybrid system

Cons

  • Only comes with four seats as standard
  • Expensive options

£110 First Year Rate

Expert rating:

4.0
Surprise, surprise, it's another PHEV that manages to claw itself into the lowest emission-producing tax band, and this one even offers seven seats. The Volvo XC90 may be getting on a bit, but it's still a formidable SUV. It's got a sumptuous interior, family-first ergonomic touches, and enough anti-crash systems to put a healthy and safety seminar to shame.

Thanks to the 19 kWh battery pack, it has a 44.1-mile (combined) EV range, and produces just 30 g/km of CO2. An imminent facelift will also help breathe some life into the ageing platform.

To find out more, read our Volvo XC90 review

Pros

  • Safety in spades
  • Well-proven PHEV powertrain
  • Seven seats

Cons

  • Getting a bit old now
  • Can feel quite big and heavy

Frequently asked questions

What are the First Year Rates?

The First Year Rates of VED (known as the showroom tax) are the rates you’ll pay on a brand-new car for the first year. These rates are different to typical VEDs to incentivise the adoption of low-emission vehicles. Previously, a car that emitted between 51-75 g/km of CO2 would pay £30, 1-51 would pay a tenner and zero emissions ars were tax-free.

Below are the new rates from 2025. Note that not even zero-emission cars have a free ride now.

CO2 (g/km)Diesel cars (TC49) that meet RDE2 standard and petrol cars (TC48)All other diesel cars (TC49)Alternative fuel cars (TC59)
0 £10£10 £10
1- 50£110£110 £110
51 – 75 £130£130 £130
76 – 90£270£350£250
91 – 100 £350£390£330
101 – 110£390£440£370
111 – 130£440£540£420
131 – 150£540£1,360£520
151 – 170£1,360£2,190£1,340
171 – 190£2,190£3,300£2,170
191 – 255£3,300£4,680£3,280
226 – 255 £4,680£5,490 £4,660
Over 255  £5,490£5,490£5,490

What is a plug-in hybrid?

Our recommendations here exclusively feature plug-in hybrids. Also known as PHEVs, these cars perfectly balance an EV and a conventional petrol or diesel car. This means they’ll use a substantial battery and motor partnered with an engine.

You’ll notice that no small car makes it onto the list. These cars aren’t prime candidates for PHEVs – the packaging required won’t work on anything too small, like a city car. Read a review of a PHEV version of a car, and you’ll usually spot a smaller boot capacity, that’s where the battery goes.

Are there any non-electrified cars that fit into these tax bands?

Even the greenest of petrol motors will be liable to pay double VED from April. The smallest of petrol cars we could find, the likes of the Hyundai i10 and Vauxhall Corsa simply cannot make it below that crucial threshold.


Ryan Gilmore is the Car Buying Editor of Parkers. Having previously worked as Deputy Commercial Content Editor for Parkers, he’s a savvy shopper dedicated to helping you when car shopping. In his spare time, he enjoys going to the gym and walking.