Motorists getting behind the wheel of these older vehicles will be affected by new Vehicle Excise Duty (VED) car tax rises set to launch within days. Classic cars first registered between 1985 and 2001 will be liable for higher VED fees from April 1 in a blow for many petrol and diesel owners.
Historic vehicle tax exemption rules state classic cars will only pay no VED charges 40 years after they are first registered on the road. This is done on a rolling basis, with cars built before January 1, 1985 set to be exempt from next Tuesday. However, cars built just after this date will still have to pay VED fees and will even be hit with hikes.
Vehicles registered between 1985 and 2001 pay VED fees based on the size of their engines with different rates depending on the model.
Analysis from finance experts at Pete Barden shows vehicles with engines below 1549cc will pay £220 over the 2025/26 tax year.
This is up from the current £210 fee which was also higher than the £200 annual charges issued to road users between 2023/24.
Those with larger vehicles with engines above 1549cc will pay £360 from April, a £15 increase on the £345 fee currently issued.
However, this is still a smaller rise than the £20 increase drivers faced this time last year where charges were up from £325.
Motorists can tax their cars online using the official GOV.UK website in just minutes.
However, those with access to the internet can also pay road tax charges by calling the DVLA or at a Post Office branch.
HM Revenue and Customs (HMRC) have previously reassured road users that the increases were a “standard uprating” in line with Retail Price Index (RPI) inflation.
HMRC confirmed the new fees would “impact” drivers who owned a vehicle but stressed fees would “remain unchanged” in real terms.
HMRC commented: “This measure will impact on motorists owning a car, van or motorcycle or using a motorcycle trade licence.
“The increase in Vehicle Excise Duty rates is in line with Retail Price Index meaning rates will remain unchanged in real terms for vehicle owners.”