Drivers are alerted that in the coming weeks, new tax changes would severely penalise vehicles with specific license plates. Car tax rates will increase following inflation, according to Chancellor Rachel Reeves’ announcement. Know the latest details on older drivers’ car tax changes in 2025.
As Labour gets ready to implement significant changes to Vehicle Excise Duty, drivers of older vehicles are being cautioned that they may be subject to significant increases in their auto taxes in the upcoming months.
To “widen the differentials” between automobiles with internal combustion engines and those that are electric, the government will impose additional car tariffs on millions of drivers nationwide on April 1, 2025.
In keeping with the Retail Price Index (RPI), the regular rate of Vehicle Excise Duty on automobiles, vans, and motorbikes will increase as part of this. Car rates for the first year are not included in this.
Older automobile owners who registered their vehicles between March 1, 2001, and March 31, 2017, are required to pay taxes according to the kind of fuel and CO2 emissions of their vehicles.
Thirteen bands, from band A to band M, comprise the car tax rates. Compared to cars registered after 2017, the emissions range is much more limited and specific.
For instance, starting in April, only gasoline and diesel vehicles with CO2 emissions under 100 grams per kilometre would be required to pay taxes.
After that, the bands get bigger until band M, which is for cars that emit more than 255 g/km and presently costs drivers £735.
In less than two months, all of these tariffs will be altered as the government attempts to discourage the ongoing use of petrol and diesel vehicles and encourage the transition to electric vehicles.
By examining their vehicle’s number plate and the number identifier, drivers will be able to determine if they are affected by the changes.
Two letters, two numbers, and three letters make up registration plates. The area code where the vehicle was initially registered is shown by the first two characters.
The two digits serve as the vehicle’s age identification and let drivers know when it was originally registered.
The plant’s final three letters are selected at random. Two times a year, on March 1 and September 1, the age identification numbers of new cars are changed in forecourts.
With harsh tax increases in April, Rachel Reeves runs the risk of “murdering” the auto industry.
A technician giving a car an MOT exam Massive changes to MOT testing are being announced by the DVSA, and new techniques will be implemented for driving licenses and trucks in the coming months.
Cars with a “75” plate will be on sale on September 1, 2025, while the new “25” plate will be unveiled on March 1, 2025.
During her Autumn Statement speech in October, Chancellor Rachel Reeves announced several significant changes to the car tax, chief among them being new regulations for VED first-year rates.
Beginning on April 1, cars with zero emissions will pay a £10 first-year rate through 2029–2030, while vehicles with emissions of 1–50 g/km will pay £110.
For vehicles generating more than 76/km, all other charges will double from what they are now. Many Britons will wish to purchase new cars as a result of the hundreds or even thousands of pounds in additional fees that were imposed in April. Prices for the most polluting cars may skyrocket to an astounding £5,490.
Number plates impacted by impending changes to the vehicle tax are 01/51, 02/52, 03/53, 04/54, 05/55, 06/56, 07/57, 08/58, 09/59, 10/60, 11/61, 12/62, 13/63, 14/64, 15/65, 16/66, and 17.