Older drivers to be hit with steep car tax bills as new rule changes introduced
Older drivers are amongst the millions that are to be hit with steep car tax bills when new Vehicle Excise Duty (VED) rates are introduced in April.
There are standard VED yearly increases due to Retail Price Index (RPI) inflation. From April 1, rates will increase to £195 per annum for drivers of all ages.
This year, petrol and diesel cars will be hit the hardest. Older motors that were registered before 2001 will also be affected. 2025, however, is the first-year there will be significant differences to VED rates and electric vehicle charges.
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Cash-strapped drivers will notice the changes when they are updating their policies from April onwards. Motorists over the age of 70 will not be exempt from these increases and will be expected to pay the same fees.
Elderly road users with a diagnosed disability may not need to pay but healthy pensioners will still need to settle their bills, reports the Express.
HM Revenue and Customs said: “From 1 April 2025, registered keepers of electric, zero or low emission cars, vans and motorcycles will need to pay vehicle tax in the same way as registered keepers of petrol and diesel vehicles.
“This change will apply to both new and existing vehicles. This new measure removes band A under the existing VED system which is currently £0. Vehicles in this band will be required to move to the first band where a rate becomes payable.”
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The biggest increase will affect first-time owners of the most polluting petrol and diesel vehicles with those emitting over 255g/km of CO2 set to pay thousands more.
Bills will rise from £2,745 to £5,490 per annum with prices doubling down the emissions range on a sliding scale. Electric cars will pay £10 in VED on their first year on the roads but will move to the standard rate after this. Meanwhile, officials have confirmed that the £10 annual discount for hybrid models will also be removed.
Older vehicles registered between 1985 and 2001 pay vehicle tax on a different set of rules but will also see costs rise. Cars with an engine producing 1549cc will pay £360 per year to use the roads, £15 more than the last financial year.
Models below 1549cc will pay £10 more with charges up from £210 to £220.
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