From April, drivers over 70 will see new car tax rules, with significant increases in Vehicle Excise Duty affecting older vehicles and electric cars.
Teesside: Major changes to car tax are coming for drivers over 70. Starting in April, Vehicle Excise Duty (VED) rates will increase significantly. The standard fee will rise to £195 annually due to inflation.
Petrol and diesel vehicle owners, especially those with older models, will feel the impact. In 2025, first-year VED rates will change, and electric vehicles will also face new charges.
When renewing car tax from April, older drivers will no longer have age exemptions. Only those with disabilities may qualify for exemptions. Healthy pensioners will need to pay the new rates.
According to HM Revenue and Customs, electric and low-emission vehicles will be taxed like petrol and diesel vehicles starting April 2025. This change affects both new and existing vehicles.
First-time owners of highly polluting vehicles will see costs soar. For cars emitting over 255g/km of CO2, annual fees will jump from £2,745 to £5,490.
Electric cars will pay £10 in their first year but will switch to the standard rate afterward. The £10 discount for hybrid models will also be removed.
Older vehicles registered between 1985 and 2001 will face increased costs. Cars over 1549cc will now pay £360 per year, up £15 from last year. Those below 1549cc will see charges rise from £210 to £220.
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