Older drivers hit with car tax change from April
Older drivers are among those affected by car tax changes that came into effect at the start of this month. From April 1, nearly all petrol, diesel and electric car owners face higher bills as new Vehicle Excise Duty (VED) rates kick in.
There are no age-based exemptions for drivers, with elderly road users subject to the same fees every other motorist in the UK is. However, some types of vehicles, including those used by disabled motorists, continue to be exempt from vehicle tax charges. It means motorists with a disability don’t need to pay to use the road but healthy pensioners still face fees. Owners of brand new petrol and diesel vehicles are among the most affected, with first-year VED for cars registered after April 2017 rising from £5,490 to £5,690 for the most polluting vehicles – a £200-increase.
The tax on less polluting vehicles is much lower, starting from £115 for CO2 emissions between 1 to 50g/km.
Older vehicles registered before March 1, 2001 have been hit with a smaller tax rise, with larger cars above 1549cc seeing fees increase from £360 per year to £375 per year (an additional £15).
Meanwhile, smaller cars in this age range with engines below 1549cc, have seen fees jump by £10 from £220 to £230 per annum.
Standard VED fees for cars registered after 2017 have also risen slightly from £195 to £200 per annum.
However, the “Historic Vehicles” policy remains in place, with classic cars registered more than 40 years ago still exempt from annual VED fees.
Owners of older electric vehicles (EVs) with a list price of under £50,000 are among the least affected by the new 2026 tax charges. EVs registered before 2017 now pay £20 per year to use the roads.
Meanwhile, first-year VED costs will stay at £10 for zero-emission vehicles before they move into the £200 per annum standard fees.
However, April marked a major change to the Expensive Car Supplement (ECS) that could hit EV and zero emissions cars.
Any vehicles registered after April 2017 with a list price of £40,000 had previously been subject to a £425 additional tax on top of the standard rate from the second year of vehicle tax.
It’s now increased to £440 (£640 including the standard rate), though the threshold for EV or zero emissions vehicles has been upped to £50,000 for vehicles registered after April 2025 to account for their higher price point. The additional rate applies for 5 years.
VED charges are an annual inflationary increase, meaning costs will tend to rise every 12 months.
HM Revenue and Customs (HMRC) confirmed the increase in VED fees late last year soon after the Chancellor Rachel Reeves published her Autumn Budget.
The UK tax authority said: “As announced at Budget 2025, the government will introduce legislation in Finance Bill 2025-26 to uprate Vehicle Excise Duty rates for cars, vans and motorcycles in line with the Retail Price Index (RPI) for 2026 to 2027.
“This will take effect from 1 April 2026.”
You can find a full breakdown of the costs on the UK Government website.
