Drivers of vehicles with engines below 1549cc will pay £220 over the 2025/26 year, while larger vehicles with engines above 1549cc will pay £360 from April
Motorists driving older vehicles, specifically those first registered between 1985 and 2001, will be hit by the upcoming Vehicle Excise Duty (VED) car tax increases set to take effect in a matter of days. From April 1, these classic cars will face higher VED charges, impacting many petrol and diesel owners.
Under current historic vehicle tax exemption rules, classic cars are exempt from VED charges 40 years after their initial registration. This is done on a rolling basis, meaning cars built before January 1, 1985, will be exempt from next Tuesday.
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However, cars manufactured just after this date will still be subject to VED fees and will even see an increase. The VED charges for vehicles registered between 1985 and 2001 are determined by engine size, with different rates applicable depending on the model.
Finance experts at Pete Barden have analysed that vehicles with engines below 1549cc will pay £220 over the 2025/26 tax year, up from the current £210 fee. This was also an increase from the £200 annual charge issued to drivers during 2023/24, reports the Express.
Owners of larger vehicles with engines above 1549cc will pay £360 from April, a £15 rise from the current £345 fee. Despite this, it’s a smaller increase than the £20 hike drivers experienced last year when charges rose from £325.
Motorists can quickly tax their cars online via the official GOV.UK website. Drivers who need to pay their road tax aren’t limited to online methods; they also have the option to ring up the DVLA or nip into their local Post Office branch for assistance.
HM Revenue and Customs (HMRC) has previously put motorists’ minds at ease, labelling the fee hikes as a mere “standard uprating” in line with the Retail Price Index (RPI) inflation figures.
Confirming the revised charges, HMRC admitted they would “impact” vehicle owners but was quick to note that, essentially, fees are staying put when you consider inflation.
An HMRC spokesperson clarified: “This measure will impact on motorists owning a car, van or motorcycle or using a motorcycle trade licence.”
They elaborated, “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.”