2025 Car Tax Hike Looms for Owners of Older Vehicles
In just a few short months, motorists with older vehicles may find themselves facing a significant increase in Vehicle Excise Duty (VED) fees. The looming changes set to take effect next spring could spell trouble for owners of classic cars from the 1990s and early 2000s, as well as newer polluting models.
What’s Changing?
Under the updated VED system, almost all petrol and diesel vehicle owners will see an increase in their annual tax payments. While the most substantial changes will affect owners of brand-new, high-polluting models, older vehicles are not exempt from the fee hikes.
Models registered between 1984 and 2001 will experience slight increases in VED rates, with different fees based on engine sizes. For cars with engines below 1549cc, owners can expect to pay £220 in the upcoming financial year, up from the current £210 charge. On the other hand, vehicles with engines above 1549cc will see their rates rise to £360 annually, a £15 increase from the current £345 fee.
How Does This Impact Motorists?
For many owners of classic cars and older vehicles, the news of upcoming VED increases may come as an unwelcome surprise. While the changes are in line with Retail Price Index (RPI) inflation rates and aim to incorporate zero-emission vehicles into the tax system, they could mean higher costs for drivers across the board.
Looking Ahead
As HM Revenue and Customs confirmed the VED rate adjustments set to take effect in April 2025, drivers are left to navigate the new landscape of car taxation. With historic tax exemption rules in place for models produced before 1984 and a shift in focus towards eco-friendly vehicles, the future of VED fees seems to be evolving rapidly.
In the face of these changes, motorists are encouraged to stay informed about the latest developments in car taxation and prepare for potential adjustments to their annual VED payments. As the automotive industry continues to adapt to new environmental standards and regulations, staying ahead of the curve when it comes to vehicle taxes is more important than ever.
