Britain’s oldest motorists will face new Vehicle Excise Duty (VED) car tax fees from the Spring as price rises come into effect.
Older drivers are among those set to be affected by new car tax changes, with higher fees coming in just months. Almost all petrol, diesel and electric car owners will face higher bills from April as new Vehicle Excise Duty (VED) rates come into effect.
Under the rules, elderly road users are liable to pay the fees in the same as every other driver in the UK, with no exemptions based on age. Some types of vehicles, including those used by disabled motorists, are among those exempt from vehicle tax charges. It means motorists with a disability will not need to pay to use the road but healthy pensioners will be hit with fees.
Healthy pensioners will pay VED the same as any other driver (Image: Getty)
Those behind the wheel of a classic car registered more than 40 years ago will also be exempt from annual VED fees. Under the changes, standard VED fees for cars registered after 2017 are expected to rise from £195 to £200 per annum.
Owners of brand new petrol and diesel vehicles are most affected, with first-year VED fees up £200 from £5,490 to £5,690. Older vehicles registered before 1 March 2001 are also set for increases, with larger cars above 1549cc seeing fees increase from £360 per year to £375 per year.
Meanwhile, costs will also rise for smaller cars with engines below 1549cc, with fees jumping from £220 to £230 per annum. 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 shortly after Rachel Reeves Autumn Budget was published.
They 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.”
Electric car owners are one of the only motorists to be less impacted by the new 2026 tax charges. Older EVs registered before 2017 will still pay £20 per year to use the roads, while first-year VED costs will stay at £10 per annum for zero-emission vehicles.
