‘Modern classics’ among those caught out by new | Tech News

Experts have warned that “modern classics” are among fashions affected by the new 2025 Vehicle Excise Duty (VED) car tax charges. Modern basic automobiles are among autos affected by the new 2025 car tax charges, with some motorists paying up to £700 per 12 months to make use of the roads. 

Classic automobiles registered over 40 years in the past are exempt from paying highway tax charges, however house owners of autos thought of “modern classics” of the future are not so lucky. Cars registered between 2001 and 2017 are legally liable to pay Vehicle Excise Duty (VED) to get behind the wheel. These rates are calculated based on total vehicle emissions, with more polluting petrol and diesel cars set to pay more. 

Polluting cars emitting over 255g/km of CO2 are most affected with drivers facing bills of well over £700 per year. Motor experts at Hagerty have stressed road users could be affected by the charges, with the last set of updates being introduced back in April. 

Hagerty explained: “For older cars, including modern classics registered between 1 March 2001 and 31 March 2017 the system is still based on emissions, and those emitting less than 100g/km will still pay nothing, while for everybody else there’s a £10 increase compared to 2024. 

“That means owners of older cars emitting more than 255g/km of CO2 will pay £735 a year for the privilege of driving on Britain’s beautifully-maintained road network. Ahem.

“Cars registered before 1 March 2001, that were still younger than 40 years old on 1 January 2025, are charged based on engine capacity. That’s £210 a year for those under 1,549cc and £345 for anything above.”

A modern classic is generally defined as a vehicle from the 1980s, 1990s, or early 2000s that is still highly sought after by enthusiasts. Modern classics can also be models that have stood the test of time and continue to retain value years after hitting the road. 

Examples of some modern classics built in the noughties include the Mazda MX-5, BMW Z4, the Vauxhall Corsa and the Ford Focus. Previous Parliament petitions have referred to as for the VED historic tax exemption guidelines to be lowered, permitting more automobiles to benefit. 

Last 12 months, a ballot demanding the exemption was prolonged to fashions simply 20 years previous was rejected regardless of securing 13,000 signatures. The earlier Government mentioned there have been “no plans” to scale back the restrict with officers stressing that the 40-year threshold was “fair”.