Older drivers hit with car tax change from April | Tech News

Older drivers are amongst these affected by car tax modifications that got here into impact in the beginning of this month. From April 1, almost all petrol, diesel and electric car homeowners face increased payments as new Vehicle Excise Duty (VED) charges kick in.

There are no age-based exemptions for drivers, with aged highway customers subject to the identical charges each different motorist within the UK is. However, some varieties of automobiles, together with these utilized by disabled motorists, proceed to be exempt from vehicle tax fees. It means motorists with a incapacity do not need to pay to make use of the highway however healthy pensioners nonetheless face charges. Owners of model new petrol and diesel automobiles are among the many most affected, with first-year VED for automobiles registered after April 2017 rising from £5,490 to £5,690 for essentially the most polluting automobiles – a £200-increase.

The tax on much less polluting automobiles is way decrease, beginning from £115 for CO2 emissions between 1 to 50g/km.

Older automobiles registered earlier than March 1, 2001 have been hit with a smaller tax rise, with bigger automobiles above 1549cc seeing charges increase from £360 per yr to £375 per yr (an extra £15).

Meanwhile, smaller automobiles on this age vary with engines under 1549cc, have seen charges bounce by £10 from £220 to £230 each year.

Standard VED charges for automobiles registered after 2017 have additionally risen barely from £195 to £200 each year.

However, the “Historic Vehicles” coverage stays in place, with traditional automobiles registered more than 40 years in the past nonetheless exempt from annual VED charges.

Owners of older electric automobiles (EVs) with a record price of below £50,000 are among the many least affected by the new 2026 tax fees. EVs registered earlier than 2017 now pay £20 per yr to make use of the roads.

Meanwhile, first-year VED prices will keep at £10 for zero-emission automobiles earlier than they transfer into the £200 each year normal charges.

However, April marked a main change to the Expensive Car Supplement (ECS) that would hit EV and 0 emissions automobiles.

Any automobiles registered after April 2017 with a record price of £40,000 had beforehand been subject to a £425 extra tax on high of the usual charge from the second yr of vehicle tax.

It’s now elevated to £440 (£640 together with the usual charge), although the edge for EV or zero emissions automobiles has been upped to £50,000 for automobiles registered after April 2025 to account for his or her increased price level. The extra charge applies for five years.

VED fees are an annual inflationary increase, that means prices will are inclined to rise each 12 months.

HM Revenue and Customs (HMRC) confirmed the increase in VED charges late final yr quickly after the Chancellor Rachel Reeves revealed her Autumn Budget.

The UK tax authority mentioned: “As announced at Budget 2025, the government will introduce legislation in Finance Bill 2025-26 to uprate Vehicle Excise Duty rates for cars, vans and motorcycles in line with the Retail Price Index (RPI) for 2026 to 2027.

“This will take effect from 1 April 2026.”

You can discover a full breakdown of the prices on the UK Government web site.