Warning to UK drivers over 2025 vehicle tax hike for older cars

Lorries,cars,vans and coaches at a standstill.
Cars that spew more pollution will pay more (Picture: Getty)

Owners of 54 models of old classic cars could face eye-watering tax hikes very soon from the DVLA.

Vehicle Excise Duty (VED), often known simply as road tax, sees people who drive or keep their cars on public roads pay an annual fee. But this year, the charge is set to increase for almost all petrol and diesel owners.

First-year VED rates will double, meaning that brand-new polluting models may pay more to be behind the wheel.

But cars registered between 1984 and 2001 will be hit hard by the tax overhaul as they fall under a different tax system. Experts say drivers in the lower power bracket will pay £220 in 2025/26, a hike of about £10 from £210 per year.

The tax increase affects Audis, Volkswagens, and even Lamborghinis. Those with more powerful engines above 1549cc will have to cough up £15 more every year, shooting up from £345 to £360.

But vehicles producing more than 255 g/km of carbon dioxide will see a £2,745 increase.

The rules will be rolled out by the Driver and Vehicle Licensing Agency (DVLA) from April.

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Hitting the roads will be a bit more expensive this year (Picture: Ashley Cooper)

New roadworthy car owners are expected to pay an additional £418 on average, according to GoCompare.com.

Diesel cars will be stung the hardest, however. The average increase will be £1,113, about double the rise facing petrol drivers.

Zero-emission vehicle drivers – think electric cars (EVs) – will no longer benefit from being tax-free for the first year.

Full list of vehicles affected

Chevrolet Corvette Stingray 6.2 V8 NEW
The Chevy Stingray is one vehicle affected

  • Audi RS6 4.0 TFSI V8
  • Audi S8 4.0 TFSI V8
  • McLaren GT 4.0T V8
  • Audi R8 5.2 FSI V10
  • Lamborghini Huracan 5.2 V10
  • Chevrolet Corvette Stingray 6.2 V8
  • Volkswagen Amarok 3.0 TDI
  • Aston Martin DBX 4.0 V8
  • Ferrari Roma 3.8T V8
  • Audi SQ7 4.0 TFSI V8
  • Range Rover Sport 4.4P V8
  • Jaguar F-Pace 5.0 P575 V8
  • Aston Martin DB12 4.0 V8
  • Porsche 911 3.7T 992 Turbo
  • Jeep Wrangler 2.0 GME
  • Ford Ranger 2.0 TD EcoBlue
  • Audi RSQ8 4.0 TFSI V8
  • Lotus Emira 3.5 V6
  • Bentley Continental 4.0 V8
  • Audi SQ8 4.0 TFSI V8
  • Aston Martin Vantage 4.0 V8
  • Toyota Hilux 2.8D
  • Porsche Macan 2.9T V6
  • Mercedes-Benz SL55
  • Range Rover 4.4 P530 V8
  • Mercedes-Benz AMG GT 4.0 V8
  • Porsche 718 Cayman 4.0 GT4
  • Lamborghini Urus 4.0 V8 BiTurbo
  • Audi RS7 4.0 TFSI V8
  • Ford Mustang 5.0 V8
  • Toyota Land Cruiser 2.8D
  • Bentley Continental 6.0 W12
  • Mercedes-Benz GLC63
  • Ford Ranger 3.0 V6
  • INEOS Grenadier 3.0P
  • Range Rover 4.4 P615 V8
  • Land Rover Defender 90 5.0 P425 V8
  • Rolls-Royce Ghost 6.75 V12
  • Ford Ranger 3.0 EcoBlue
  • Mercedes-Benz G63
  • Ferrari Purosangue 6.5 V12
  • Rolls-Royce Cullinan 6.75 V12
  • Alfa Romeo Stelvio 2.9 V6 Bi-Turbo
  • Mercedes-Benz GLE63
  • Maserati Levante 3.0 V6
  • Porsche Cayenne 4.0T V8
  • BMW M8 4.4 V8
  • Maserati MC20 3.0 V6
  • Land Rover Defender 110 5.0 P425 V8
  • Mercedes-Benz G400D
  • Lamborghini Revuelto 6.5 V12
  • Bentley Bentayga 4.0 V8
  • BMW X7 M 4.4 V8
  • BMW X6 M 4.4 V8
  • BMW Alpina XB7 4.4 V8
  • Bentley Flying Spur 4.0 V8
  • Maserati Levante 3.8 V8
  • BMW X5 M 4.4 V8
  • Mercedes-Benz GLS63h

People who buy hybrid cars from April will pay an extra £135 and £327 extra on average. GoCompre says this is based on the model, however.

Tax rates are largely based on how much CO2 fossil-fuel-guzzling cars spew out – higher emission vehicles are placed in higher VED bands.

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Vehicles manufactured after 2001 don’t have the size taken into account.

VED increases will be in line with inflation, HMCR confirmed, much the same as it did last year.

HMRC said: ‘This measure will uprate the Vehicle Excise Duty rates for cars (excluding first year rates) and all other rates for vans, motorcycles and motorcycle trade licences by the Retail Price Index, and will reflect the inclusion of zero-emission vehicles in Vehicle Excise Duty from 1 April 2025.

‘This is a standard uprating that comes into effect from 1 April 2025.’

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