2 days Ago By Luke Chillingsworth
Motorists getting behind the wheel of older petrol and diesel vehicles will be hit with the “steepest increase” in car tax fees over the next year, according to specialists. Andy Wood, international tax expert at Tax Natives , warned those with old vehicles will feel the biggest sting in a major concern for cash-strapped motorists. Older vehicles are more likely to produce higher emissions meaning owners would be slapped with some of the highest Vehicle Excise Duty (VED) bills.
It’s set to be a blow for enthusiastic car owners who will notice hefty rises when they come to re-tax their vehicles over the next 12 months. Experts have warned many individuals may even have to “reconsider their vehicle choices” if they want to remain on the road. Andy said: "Older petrol and diesel vehicles are the most likely to experience the steepest increases.
“These vehicles, which are prevalent among older drivers, are now subject to harsher tax bands, potentially forcing some motorists to reconsider their vehicle choices or face significantly higher annual costs." Classic cars are only exempt from paying Vehicle Excise Duty (VED) charges 40 years after they were first registered, The rules state only cars built before January 1, 1985 will not have to pay meaning models built just after this will still be viable for fees. Owners of cars built between 1985 and 2001 with engines above 1549cc will pay £360 from 2025 with cars below 1549cc charged £220.
Cars built between 2001 and 2017 pay VED rates based on emissions with the most polluting cars most affected. Models emitting over 255g/km of CO2 are set for £760 annual bills, up from the £735 charged to rad users before April’s changes. Vehicles which emit between 226 and 255g/km of CO2 will also feel the impact with bills up from £710 to £735.
Andy added: "It’s critical that drivers, especially older drivers who may be buying cars they have kept for years, fully understand the VED changes and the impact on their budgets. “The lack of awareness could lead to significant financial strain if they purchase a car that pushes them into higher tax bands without realising it.".
