Older drivers facing new car tax charges from | Tech News
Older motorists are amongst these facing the affect of the new car tax modifications, with elevated charges arriving in simply a few months’ time.
Nearly each petrol, diesel and electric vehicle proprietor will face greater payments from April, when up to date Vehicle Excise Duty (VED) charges take impact. According to the laws, older street customers should pay the identical charges as all different drivers throughout the UK, with no age-related concessions out there. Certain vehicle classes, together with these utilized by disabled drivers, stay excluded from vehicle tax obligations. This means disabled motorists will not need to pay street utilization charges, while match and healthy pensioners will face the charges. Drivers of classic vehicles registered more than 40 years in the past may even stay exempt from annual VED funds. Following the changes, normal VED charges for autos registered post-2017 are anticipated to climb from £195 to £200 yearly. Purchasers of brand-new petrol and diesel vehicles face the largest affect, with initial-year VED charges rising £200 from £5,490 to £5,690.
Older fashions registered previous to March 1, 2001, may even see will increase, with bigger autos exceeding 1549cc experiencing payment will increase from £360 per yr to £375 per yr.
Simultaneously, bills will climb for smaller autos with engines underneath 1549cc, with charges leaping from £220 to £230 yearly. VED charges are subject to an annual inflation-linked increase, which means bills sometimes increase each 12 months.
HM Revenue and Customs (HMRC) introduced the rise in VED charges in the direction of the tip of final yr, following the publication of Rachel Reeves‘ Autumn Budget.
Officials acknowledged: “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 April 1, 2026.”
Electric vehicle drivers are among the many few teams of motorists who will face minimal affect from the new 2026 tax hikes.
Established EVs registered earlier than 2017 will proceed to pay £20 yearly for street utilization, while first-year VED will stay at £10 per yr for zero-emission vehicles.
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