Owners of older vehicles are being alerted to changes in car taxes set to take effect next year in the United Kingdom which could significantly affect their budgets, media reports said.
In late October, Chancellor Rachel Reeves presented Labour’s first Autumn Statement, revealing several major updates for British drivers. Among such changes is an unexpected freeze on the previously announced five-pence per litre fuel duty reduction, along with increased funding for pothole repairs and road maintenance.
The statement also indicated that starting April 1, 2025, the government plans to adjust standard vehicle excise duty (VED) rates for cars, vans, and motorcycles, aligning them with the retail price index. But adjustment would not apply to the first-year rates for cars.
The statement also indicated that starting April 1, 2025, the government plans to adjust standard vehicle excise duty rates for cars, vans, and motorcycles, aligning them with the retail price index. But adjustment would not apply to the first-year rates for cars.
The majority of petrol, diesel, and electric vehicle owners would face higher costs to keep their cars on the road due to new tax regulations.
Former chancellor Jeremy Hunt previously announced that electric vehicles would be subject to VED to establish a “fairer system of taxation.”
For vehicles registered on or after April 1, 2017, taxes would be determined by their emissions output, which ranges from zero grams of CO2 per kilometre to over 255 grams/km. Meanwhile, cars registered between March 1, 2001, and March 31, 2017, would also be taxed based on CO2 emissions, but the tax bands for such vehicles are less stringent and generally less costly.
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The most polluting vehicles registered after the date would incur a hefty tax of £2,745. In contrast, the highest-emission cars registered before that date would fall into Band M and pay £735.
Vehicles registered before March 1, 2001, would also see increased tax rates, as such are determined by engine size. Cars with engines smaller than 1549cc would pay £210 for a single 12-month period while those with larger engines will face a tax of £345.
Experts have cautioned that owners of older vehicles might experience further price increases linked to inflation rates, as outlined by the chancellor in the recent budget announcement.
