Older drivers hit with car tax change from April 1

Older drivers have been warned of a number of upcoming changes to road tax that could leave many out of pocket. From April 1 2025, the DVLA will update a number of rules surrounding how much drivers are charged, with new car buyers and electric car owners in particular set to pay a fortune more, but older diesel and petrol cars seeing higher charges too. Go.

Compare highlighted that baby boomers will be most affected because they are more likely to drive an older, highly polluting petrol or diesel car which will be subject to higher rates. Collectively they are set to pay a staggering £40.5 million more from April 1.



They explained: "Baby boomers will be the most impacted of any generation...

In total, it’s estimated that baby boomers will be taxed an extra £40.5 million as a result of the changes. "Just six percent of baby boomers drive either a battery electric or hybrid electric car, Go.

Compare’s survey found, compared to 11 percent of millennials and nine percent of Gen X." From April 1 2025, the tax exemption on all electric vehicles in the UK will end, with drivers paying the same flat rate of £195 per year as petrol, diesel or hybrid car owners. New EV buyers will also need to pay for their road tax, with all zero-emission models now subject to a £10 charge for the first year it is registered on the UK's roads.

However, if the new electric model has a retail price of more than £40,000, the owner will also be subject to the expensive car supplement of £425 from years two to six, increasing the total charge to £620. Electric cars are not the only type of vehicle that will be affected by the DVLA's changes. New car buyers choosing any model are likely to pay more for their tax.

The vehicle excise duty (VED) charge applied to new models is based on the amount of carbon dioxide the model produces, with all rates increasing in a bid to encourage more motorists to choose a cleaner car. Plug-in hybrid models will see a £100 tax increase from April 1 2025, with the rate buyers are charged rising to £110 for the first year. However, it is petrol and diesel car buyers that will likely be the most affected by the DVLA's changes, with many of the tax bands doubling overnight and this is where older drivers will be most affected.

Older drivers are more likely to be driving a petrol or diesel car, which will be subject to higher tax rates. Drivers interested in buying a new petrol-powered supermini that produces between 111 and 130g/km of carbon dioxide, such as a Vauxhall Corsa or Toyota Aygo X, will need to pay £440, rather than £220. However, models producing more than 255g/km of carbon dioxide will be the worst affected by the tax changes.

The charge applied to vehicles such as supercars and luxury SUVs will double to £5,490 - an increase of £2,745..