Drivers of older vehicles are being warned that they could face massive car tax hikes in the coming months as Labour prepares to roll out major changes to Vehicle Excise Duty.
On April 1, 2025, millions of drivers across the country will be hit with new car taxes as part of the Government's aim to "widen the differentials" between electric vehicles and internal combustion engine cars.
As part of this, the standard rate of Vehicle Excise Duty for cars, vans and motorcycles will rise in line with the Retail Price Index (RPI). This will not include first year rates for cars.
Owners of older vehicles registered between March 1, 2001, and March 31, 2017, pay tax based on the fuel type and CO2 emissions of the car.
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Drivers of certain older vehicles could face huge car tax hikes in the near future
PA
The car tax rates are split into 13 bands ranging from band A to band M. The range of emissions is far smaller and more particular than vehicles registered after 2017.
For example, any petrol or diesel car which emits less than 100g of CO2 per kilometre will only have to start paying tax from April. Until now, they did not have to pay car tax.
Bands then increase until band M which is for vehicles emitting over 255g/km, which currently sets drivers back £735.
These rates will all change in less than two months as the Government looks to crack down on the continued use of petrol and diesel vehicles and incentivise the switch to electric cars.
Drivers will be able to tell whether they are impacted by the changes by looking at their car number plates and the number identifier.
Registration plates are made up of two letters, two numbers followed by three letters. The first two letters denote the area code where the car was first registered.
The two numbers are the age identifier and help motorists know when the car was first registered. The three letters at the end of the plant are chosen at random.
The age identifier numbers change twice a year for new vehicles, with forecourts seeing these changes on March 1 and September 1.
This year, the new "25" number plate will be introduced on March 1, 2025, while cars with a "75" plate will be launched on September 1, 2025.
Chancellor Rachel Reeves announced several important car tax changes during her Autumn Statement speech in October, headlined by new rules for VED first year rates.
From April 1, zero emission cars will pay a first year rate of £10 until 2029-30, while cars emitting 1-50g/km will increase to £110. All other rates for cars emitting more than 76/km will double from their current rates.
This will see many Britons wanting to buy new vehicles after April hit with hundreds or even thousands of pounds in extra charges. The most polluting vehicles could see prices spiral to a staggering £5,490.
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GETTYNumber plates affected by incoming car tax changes
- 01/51
- 02/52
- 03/53
- 04/54
- 05/55
- 06/56
- 07/57
- 08/58
- 09/59
- 10/60
- 11/61
- 12/62
- 13/63
- 14/64
- 15/65
- 16/66
- 17
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