Owners of older cars are set to be hit by the new Vehicle Excise Duty (VED) rates which will be implemented from the start of next month thanks to new updateIf you drive an older car you will be hit by the new Vehicle Excise Duty rates which are set to hit from April 1st.

Owners of cars registered between 1985 and 2001 will continue to be charged the tax depending on the size of their engine. Those with engines producing more than 1549cc will have to pay £360 to use the roads – an increase of £15. Meanwhile, if your car was registered between March 1st 2001 and March 31st 2017, you will also be impacted by an increase in VED payments. Vehicles in this category are separated into emissions-based bands and costs are on the rise across the board. For instance, models emitting over 255g/km of CO2 are set to pay up to £25 more. The standard road tax rate of £195, up from £190, will be charged for vehicles registered after 2017. If your car costs more than £40,000 new, you will be paying the expensive car supplement for the second to sixth year the vehicle is on the road. This will be increased from £410 to £425.

Owners of electric, zero, or low emission cars registered on or after April 1st 2025 will pay the lowest first year rate of vehicle tax set at £10, but will pay the standard rate thereafter at £195. Those registered between April 1st 2017 and Mach 31st 2025 will pay the standard £195 rate.

However, older classic cars registered before 1985 will not pay anything due to the historic vehicle tax exemption, the Express reported.

HM Revenue and Customs said the changes were a “standard up rating” that would come into effect from the start of next month.

It stated: “This measure will up rate 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.”

Refrence by DEVON LIVE