Home Life & Style Owners of older vehicles set to face fresh 2025 car tax hike

Owners of older vehicles set to face fresh 2025 car tax hike

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According to motoring experts at Pete Barden, motorists in the lower power bracket will pay £220 in 2025/26.

This means owners pay a slight £10 increase with rates up from the current £210 per year charge.

Meanwhile, those with slightly more power above the 1549cc threshold will pay £15 more from April.

Annual rates will stand at £360 over the next financial year, an increase on the current £345 rate.

However, price rises in this category are not as steep as the last increase in spring 2024.

Earlier this year, vehicles with engines over 1549cc saw a £20 increase in annual rates with bills rising from £325 per annum to £345.

Vehicles produced after 2001 have a different VED tax system with engine sizes no longer taken into account.

Historic tax exemption rules also mean models produced before 1984 are no longer required to pay charges.

HM Revenue and Customs has confirmed that VED rates will increase in line with RPI inflation rates from April.

HMRC explained: “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.”

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