Older vehicles registered between 1985 and 2001 will be hit with new car tax rises in weeks as part of the UK’s major Vehicle Excise Duty (VED) overhaul.
VED rates will go up across the board from April 1 with every petrol and diesel owner to be stung.
Standard fees are rising from £190 to £195 for vehicles registered after 2017 due to the annual Retail Price Index (RPI) inflation increases.
Models registered between 2001 and 2017 which are charged VED through emissions bands will notice updates.
Costs are up across all categories with the most polluting models emitting over 255g/km of CO2 paying up to £25 more.
The £15 increase may seem a steep rise but is actually lower than the same update 12 months ago when motorists went from paying £325 to £345.
Smaller cars with engines below 1549cc also face increases with annual VED fees up from £210 to £220.
The new tax changes were announced by Labour in their Autumn Budget late last year,
HM Revenue and Customs (HMRC) confirmed for many road users the VED increases were simply a standard uprating and were vital to maintain the current receipts “in real terms”.
HMRC said: “This measure will uprate the Vehicle Excise Duty standard rates for cars, vans, motorcycles and motorcycle trade licences (excluding the first-year rates for cars) 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 come into effect from 1 April 2025.”