Owners of older classic cars could face eye-watering tax hikes next year.
Vehicle Excise Duty (VED), often known simply as road tax, sees people who drive or keep their cars on public roads pay an annual fee.
But the charge is set to increase for almost all petrol and diesel owners in spring.
First-year VED rates will double, meaning that brand-new polluting models may pay more to be behind the wheel.
Cars registered between 1984 and 2001 will be hit hard by the tax overhaul as they fall under a different tax system.
Experts say drivers in the lower power bracket will pay £220 in 2025/26, a hike of about £10 from £210 per year.
Those with more powerful engines above 1549cc will have to cough up £15 more every year, shooting up from £345 to £360.
This is all part of new rules being rolled out Driver and Vehicle Licensing Agency (DVLA) from April.
New roadworthy car owners are expected to pay an additional £418 on average, according to GoCompare.com.
Diesel cars will be stung the hardest, however. The average increase will be £1,113, about double the rise facing petrol drivers.
Zero-emission vehicle drivers – think electric cars (EVs) – will no longer benefit from being tax-free for the first year.
People who buy hybrid cars from April will pay an extra £135 and £327 extra on average. GoCompre says this is based on the model, however.
Tax rates are largely based on how much CO2 fossil-fuel-guzzling cars spew out – higher admission vehicles are placed in higher VED bands.
More Trending
Vehicles manufactured after 2001 don’t have the size taken into account.
VED increases will be in lines with inflation, HMCR confirmed, much the same as it did last year.
HMRC said: ‘This measure will uprate the Vehicle Excise Duty rates for cars (excluding first year rates) and all other rates for vans, motorcycles and motorcycle trade licences by the Retail Price Index, and will reflect the inclusion of zero-emission vehicles in Vehicle Excise Duty from 1 April 2025.
‘This is a standard uprating to comes into effect from 1 April 2025.’
Get in touch with our news team by emailing us at webnews@metro.co.uk.
For more stories like this, check our news page.
0 Comments