Older drivers to be slapped with 3 new car tax | Tech News

Older drivers should not totally exempt from Vehicle Excise Duty (VED) charges and pays the identical increase as different street customers from April. The guidelines state that solely autos utilized by a disabled individual are eligible for an exemption from charges, with healthy pensioners nonetheless having to pay. 

It means over-70s will be hit with the identical petrol, diesel and electric car prices as each different age group, with new prices coming into impact from April 1. VED charges are annual inflationary rises, however the totally different bands guarantee some street customers pay more than others.

Petrol and diesel rises

Standard VED charges for automobiles constructed after 2017 will rise from £195 to £200 every year from April. However, iit’s the homeowners of model new combustion fashions who will be most affected with 12 months one charges set to rise significantly. 

Those getting behind the wheel of model new fashions emitting over 255g/km of CO2 pays £5,690 to use the roads from April 1, up on the present £5,490 price. 

Vehicles registered between 2001 and 2017 are additionally affected with a sliding scale of prices based mostly on total emissions. Those in band M emitting over 255g/km of CO2 are again most affected, with payments up from £760 to £790 per 12 months. 

Electric car charge hikes

Older drivers who’ve made the change to electric automobiles (*3*)will even be hit with increased charges from April 1, 2026. Similar to combustion fashions, normal VED prices for automobiles registered after 2017 will hit £200 per 12 months. 

However, first-year charges will stay at simply £10 in 2026, one of the one charges not to have hikes from the earlier 12 months.

Higher charges for automobiles registered earlier than 2001 

Data has recommended that many older drivers keep automobiles for longer, that means some might nonetheless have the keys to fashions registered earlier than 2001. 

A earlier examine discovered that round 63% of drivers 80 and older reported preserving a vehicle for not less than seven years or more earlier than changing it. Cars earlier than 2001 have a totally different VED tax system, with chargers based mostly on the dimensions of the engine as an alternative of vehicle emissions. 

Those with engines hitting 1549cc and under pays £10 more in 2026 with payments up from £220 to £230 every year. Meanwhile, automobiles above 1549cc pays £375 from April, up from the £360 every year fee presently utilized to motorists.