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    Older drivers hit with car tax hike from April as new fees confirmed

    2 weeks ago

    Elderly motorists are amongst those facing the impact of fresh car tax alterations, with increased charges arriving in just a few months' time. Nearly every petrol, diesel and electric vehicle owner will encounter steeper bills from April when updated Vehicle Excise Duty (VED) rates take effect. According to the regulations, senior road users must pay identical charges to all other drivers across the UK, with no age-related concessions available. Certain vehicle categories, including those utilised by disabled drivers, remain amongst those excluded from vehicle tax obligations. This means disabled motorists won't need to pay road usage fees, whilst fit and healthy pensioners will face the charges. Drivers of vintage automobiles registered over four decades ago will also remain exempt from yearly VED payments. Following the adjustments, standard VED charges for vehicles registered post-2017 are anticipated to climb from £195 to £200 annually. Purchasers of brand-new petrol and diesel cars face the biggest impact, with initial-year VED charges rising £200 from £5,490 to £5,690. Older models registered prior to 1 March 2001 will also see rises, with larger vehicles exceeding 1549cc experiencing fee increases from £360 yearly to £375 yearly, reports the Express. Simultaneously, expenses will climb for smaller vehicles with engines under 1549cc, with charges leaping from £220 to £230 annually. VED fees represent a yearly inflation-linked rise, meaning expenses typically increase every 12 months. HM Revenue and Customs ( HMRC ) announced the rise in VED charges towards the end of last year, following the publication of Rachel Reeves' Autumn Budget. Officials stated: "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." Electric vehicle drivers represent one of the few groups of motorists who will face minimal impact from the fresh 2026 tax hikes. Established EVs registered prior to 2017 will continue paying £20 annually for road usage, whilst first-year VED expenses will remain at £10 per year for zero-emission cars.
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