Older Vehicles Facing Car Tax Increase in April
From April 1, older vehicles in the UK could be subjected to a rise in Vehicle Excise Duty (VED) rates. This change will particularly impact cars registered between 1985 and 2001. These owners will see their taxes calculated based on their engine size. Vehicles with engines over 1549cc will face a £360 road tax bill, an increase of £15 from the previous rate. Similarly, drivers of cars registered between March 1st, 2001, and March 31st, 2017, will also experience a hike in their VED payments. Cars in this category are divided into emissions-based bands, with costs rising across all bands. For example, vehicles emitting over 255g/km of CO2 will need to pay up to £25 more.
Furthermore, for vehicles registered post-2017, the standard road tax rate is set to increase from £190 to £195. Owners of cars whose initial cost exceeded £40,000 will be subject to the expensive car supplement for the second to sixth year the vehicle is on the road. This charge will rise from £410 to £425, according to reports from Devon Live. However, there is good news for owners of electric, zero-emission, or low-emission vehicles registered on or after April 1, 2025. They will benefit from the lowest first-year rate of vehicle tax at £10 but will incur the standard rate of £195 thereafter. Similarly, those registered between April 1st, 2017, and March 31st, 2025, will pay the standard rate of £195.
In contrast, classic cars registered prior to 1985 will remain exempt from any charges due to the historic vehicle tax exemption. The HM Revenue and Customs have dubbed these upcoming changes as a “standard uprating,” set to be implemented from the beginning of April. The authority clarified that these adjustments will uprate the VED standard rates for cars, vans, motorcycles, and motorcycle trade licences (excluding first-year rates for cars) by the Retail Price Index. Additionally, the inclusion of zero-emission vehicles in Vehicle Excise Duty will commence from April 1, 2025.
It’s essential for car owners in the UK to be aware of these changes coming into effect in April. The adjustments in the VED rates aim to reflect the environmental impact of vehicles while also aligning with the government’s efforts to promote cleaner transport options. This move underscores the importance of sustainable transportation and encourages the adoption of electric and low-emission vehicles to reduce carbon emissions and combat climate change.
While these revisions may lead to increased expenses for certain car owners, they also incentivize the transition towards eco-friendly vehicles. The government’s push towards zero-emission transportation is a step in the right direction for a greener and cleaner future. As the automotive industry evolves, these changes in VED rates serve as a reminder for individuals to consider the environmental impact of their vehicles and explore greener alternatives for a more sustainable tomorrow.