Motorists of older cars could be slapped with a Vehicle Excise Duty (VED) increase coming in just months.
Cars built in the 1990s will face new car tax fees in weeks (Image: Getty)
Motorists running older classic cars are set to face new car tax price hikes in what could be a blow to owners.
Vehicle Excise Duty (VED) fees – an annual tax paid by owners of vehicles that are driven or kept on public roads – will rise for almost all petrol and diesel
The biggest changes will see certain first-year VED rates double with those running brand-new polluting models set to pay thousands more to use the roads.
However, models registered between 1984 and 2001 are also affected by the changes with slight increases compared to previous rates.
These older vehicles are priced under a slightly different tax system with varying rates for cars with engine sizes above or below 1549cc.
VED rates will increase for almost all petrol and diesel owners next Spring (Image: Getty)
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.
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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.”
