Drivers with cars built between these years face new charges from today
Experts at Pete Barden have warned models registered before March 1, 2001, will pay more from April 2025.
Owners of older vehicles built between these years face new VED car tax bills today. Experts at Pete Barden have warned models registered before March 1, 2001, will pay more from April 2025.
Classic cars first registered between 1985 and 2001 will face higher VED charges from April 1, marking a setback for many petrol and diesel owners.
According to the rules for historic vehicle tax exemption, classic cars are only exempt from VED charges 40 years after their initial road registration. This is done on a rolling basis, with cars manufactured before January 1, 1985, becoming exempt from April 1..
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However, cars produced just after this date will still be subject to VED charges and will even face increases. Vehicles registered between 1985 and 2001 pay VED fees based on their engine size, with different rates depending on the model.
Analysis from motoring expert Pete Barden concluded that vehicles with engines below 1,549cc will pay £220 over the 2025/26 tax year.
This represents an increase from the current £210 fee, which was also higher than the £200 annual charges issued to road users between 2023/24. Those with larger vehicles with engines above 1,549cc will pay £360 from April, a £15 increase on the current £345 fee.
However, this is still a smaller rise than the £20 increase drivers faced this time last year when charges rose from £325. Motorists can tax their cars online using the Gov.uk website in just minutes. They can also pay the road tax charge by phone through the DVLA or in person at a Post Office branch, in addition to online.
HM Revenue & Customs (HMRC) described the increases as simply a standard uprating to match Retail Price Index inflation, adding that the fees will still have an "impact" on drivers with vehicles, but they will "remain unchanged" in real terms.
HMRC said: "This measure will impact on motorists owning a car, van or motorcycle or using a motorcycle trade licence. 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."