Motorists with the keys to older autos registered earlier than 2001 may even be affected by new 2026 automotive tax updates.
Automobiles registered earlier than 2001 might be hit with new tax charges (Picture: Getty)
Automobiles registered earlier than 2001 face being slapped with new automotive tax modifications inside weeks as new Automobile Excise Responsibility (VED) payments are launched. VED costs will enhance throughout the board from April 1, with petrol, diesel and electrical automotive house owners all set to note added prices. Automobiles registered after 2017 are charged a normal VED payment, rising from £195 to £200 per 12 months, in addition to first-year charges.
Automobiles constructed between 2001 and 2017 pay prices based mostly on a sliding scale of 13 tax bands, with costs ranging relying on whole emissions. Fashions registered earlier than 1986 are fully exempt from fees attributable to historic tax exemption guidelines, however automobiles from 1986 to 2001 are nonetheless chargeable for prices.
Older automobiles are charged VED based mostly on engine measurement (Picture: Getty)
These older autos can pay VED charges based mostly solely on the dimensions of the engine, with high-performing fashions paying extra. Evaluation from Pete Barden means that VED charges for automobiles with engines of not less than 1,549cc or under will rise from £220 to £230 in a £10 enhance.
The identical payment was elevated by £10 final 12 months as payments rise from £210 to £220 again in April 2025. Larger-powered autos can pay barely extra, with costs set to extend from £360 to £375 per 12 months.
Nevertheless, the £15 enhance is as soon as once more the identical rise as seen in 2025 when prices had been up from £345 to £360. Standard automobiles from the Nineteen Nineties which could possibly be affected by the change embrace the Ford Fiesta Mk4, Vauxhall Astra, Nissan Micra and Rover 200.
The Volkswagen Polo, BMW 3 Collection and Vauxhall Cavalier had been additionally among the many best-selling fashions of the last decade. VED is a authorized requirement and motorists are obliged to pay the fees to be able to get behind the wheel.
Failure to pay VED modifications can lead to an £80 advantageous however this will rise as much as £1,000 if motorists proceed to carry out. The DVLA has the ability to clamp autos that don’t meet VED guidelines in a severe blow to house owners.
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HM Income and Customs admitted that the rise in VED charges was a part of a normal annual inflationary rise.
They beforehand defined: “As introduced at Price range 2025, the federal government will introduce laws in Finance Invoice 2025-26 to uprate Automobile Excise Responsibility charges for automobiles, vans and bikes in keeping with the Retail Value Index (RPI) for 2026 to 2027. This can take impact from 1 April 2026.”
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