Major Car Tax Changes Coming in April: Older Drivers Hit Hardest

Major Car Tax Changes Coming in April Older Drivers Hit Hardest

Major Car Tax Changes Coming in April: Older Drivers Hit Hardest

With the Spring season just around the corner, a significant shift is coming to car tax rules in the UK that will affect many, especially older drivers. From April 2025, changes to Vehicle Excise Duty (VED) will mean higher bills for drivers, with elderly motorists being among the most impacted. If you’re over 70 and currently behind the wheel, you may want to brace yourself for a noticeable increase in your car tax costs.

As part of annual updates, the UK government adjusts VED fees in line with the Retail Price Index (RPI) inflation each spring. This year, the standard rate for all motorists will rise to £195 per year starting April 1. However, it’s not just the standard tax rate that’s going up – specific vehicle categories, including older cars and less eco-friendly models, are going to face higher charges, and there’s no exception for older drivers.

Those with petrol and diesel vehicles, particularly older models produced before 2001, will feel the biggest impact. This is particularly concerning for older drivers who may be holding on to classic cars or vehicles that are less efficient. What’s more, the biggest hikes will affect the most polluting vehicles. For cars emitting over 255g/km of CO2, the first-year VED rate will more than double, jumping from £2,745 to a hefty £5,490. That’s a steep increase that could hit older car owners particularly hard.

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Even electric cars are being pulled into the new tax structure. While electric vehicles (EVs) have enjoyed tax exemptions in recent years, that will no longer be the case. From April 2025, EV owners will need to pay a first-year fee of £10, and after that, they will be required to pay the standard £195 annually, just like other cars. Hybrid vehicles, which have also been enjoying discounts, will see the £10 annual discount removed.

Older vehicles (those manufactured between 1985 and 2001) will also see changes. Depending on engine size, these vehicles will be subject to slightly increased rates, with cars producing over 1,549cc now facing £360 in annual fees, up from £345 last year. Even smaller engines will see a slight increase of £10. For some older drivers, particularly pensioners on fixed incomes, these hikes may feel like a financial burden.

One key point to note is that the new rules do not have any exemptions based on age. So, older drivers will still be liable for the same tax fees as everyone else unless they have a diagnosed disability. Those who rely on their vehicles to get around might feel the impact more than others, as there are no age-based discounts to soften the blow.

For those still holding onto older, less eco-friendly cars, now is the time to start considering alternatives or budgeting for these new fees. The upcoming changes could make it much more expensive to drive, especially if your car has high emissions or was registered before 2001. It’s a tough pill to swallow for many elderly drivers who were expecting to be able to continue driving on the roads without facing hefty new financial pressures.

So, older drivers should be prepared for these changes, which will be rolling out in just a few weeks. Whether it’s the increase in fees for petrol and diesel vehicles or the end of exemptions for electric cars, these shifts in car tax rates are going to hit many motorists, particularly those who have been enjoying lower rates for years. It’s crucial for drivers to stay informed and make necessary adjustments before the new rules take effect in April.

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