DVLA car tax exemption means some ‘pay nothing’ | | Tech News

The current hike in Vehicle Excise Duty (VED), or car tax, has impacted many UK drivers. However, there’s a silver lining for some motorists.

As of April 1, 2025, electric vehicle house owners are required to pay VED for the primary time. Annual commonplace price fees have additionally elevated for petrol and diesel vehicles. Electric, zero, or low-emission autos registered on or after April 1, 2025, might be subject to the bottom first-year vehicle tax price, set at £10.

From the second tax fee onwards, the usual price of £195 will apply, which is now additionally relevant to such autos registered between April 1, 2017, and March 31, 2025.

Vehicles of these varieties registered between March 1, 2001, and March 31, 2017, have been moved to the primary band, with a VED worth of £20. Additionally, the £10 annual low cost for hybrid and AFVs might be abolished, and the speed drivers pays will rely on when the vehicle was first registered.

If the vehicle was:

registered earlier than 1 April 2017 – this price will rely on the vehicle’s CO2 emissions (verify the present charges for these autos)

registered on or after 1 April 2017 – you’ll pay the usual price (this might be £195)

Most electric vans will transition to the usual annual price for mild items autos. Electric bikes and tricycles will transfer to the annual price for the smallest engine dimension.

Moreover, new electric and zero-emission autos registered from April 1, 2025, with a listing price over £40,000, might be subject to the usual price, plus an further costly car complement for the primary 5 years ranging from the second licence.

However, one class of drivers can nonetheless benefit from tax-free roads. From April 1, 2025, autos manufactured earlier than January 1, 1985, at the moment are eligible for historic vehicle standing, which exempts them from Vehicle Excise Duty (VED).

But it isn’t as simple as merely not taxing the vehicle – sure procedures should be adopted.

Mark Wilkinson, managing director at Heritage Car Insurance, defined: “Historic vehicles are cars, vans and motorcycles that are at least 40 years old and classified as such by the DVLA. Once a vehicle is officially registered as historic, you no longer need to pay vehicle tax (VED). This exemption applies from the start of the financial year after your car’s 40th birthday.

“As of April 1, 2025, a car constructed earlier than January 1, 1985, qualifies for this historic vehicle exemption. It’s essential for motorists to do not forget that they have to nonetheless undergo the method of taxing their vehicle with the DVLA.”