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Older car owners face a huge tax increase in 2025 – find out what’s changing

Driver of older cars will experience an unwelcome surprise Vehicle tax is expected to skyrocket in spring 2025. Many are already affected by this rising cost of living and rising fuel prices, this new tax is just another blow to the wallet. The real disadvantage, however, lies with owners of older, less environmentally friendly cars – and that’s not just a small increase.

A focus on older, polluting vehicles

The Vehicle Excise Tax (VED)The vehicle tax, that is, the vehicle tax, has been steadily increasing, and the recent changes mainly concern the target older, more polluting cars. This means drivers of vehicles registered between 1984 and 2001 will feel the brunt of the increase.

Anyone driving cars with engines under 1549 cc will face an annual tax increase £10which, while seemingly modest, will add up over time. But it is the owners of larger cars with more powerful engines who will feel the real increase and see their tax bill skyrocket £15.

  • Smaller vehicles (under 1549 cc): Tax increases £10out of £210 to £220 yearly.
  • Larger vehicles (over 1549 cc): Tax jumps past £15out of £345 to £360 per year.

For those holding on to their older cars to avoid the eye-watering prices of new models, this increase could prove to be the final straw.

What is behind the increase: economic or political game?

While the government is to blame inflation (RPI) for the increase, there is growing suspicion that the move is part of a broader, politically driven agenda to force drivers to pay more environmentally friendly Vehicles. The decision to accept zero-emission cars The reform of the tax system, which will come into effect from April 2025, is likely to encourage people to make the switch.

But critics argue that this policy places a significant financial burden on drivers who simply cannot afford to trade in their old bangers for shiny new electric cars.

By pointing at it RPI inflation The reason for these increases seems to be ignored is the fact that many car owners are unable to spend money on new environmentally friendly vehicles. It is clear that the government is aiming for this “Poorer drivers” and those with older, less efficient cars, the practical implications are far more painful.

  • The government’s insistence on it Reducing emissions seems to justify the tax increase.
  • Zero-emission vehicles are now included in the VED, perhaps as an incentive for drivers to switch to more environmentally friendly options.

But let’s be honest: for many Brits, switching to an electric car is not a realistic option. So this hike may not just be about fighting pollution. It could also be about the state settling the bills at the expense of everyday drivers.

The impact on drivers: A not so modest increase

For those with larger engines, the repeated increases in VED begin to feel like a slap in the face. The £15 increase for cars with engines over 1549cc doesn’t seem like much in itself. But when you consider rising fuel prices, Maintenance costsand increased Insurance premiumsThe additional burden might be enough to make many think twice about whether their current engine is worth sticking with.

  • Tax increase: £15 more for vehicles with engines over 1549cc.
  • Add those Maintenance costs And Insurance increasesand it is no wonder that some are feeling the pinch.

With the rising cost of living already squeezing Brits from all angles, this tax hike could make owning an older car feel like a financial gamble that many can’t afford.

A lifeline for older cars? The historical exception!

Currently, vehicles manufactured before 1984 are still exempt from this increase due to a law historical tax exemption. But let’s not get too comfortable. With it privilege Since the exemption only applies to a small percentage of cars still on the road, there is growing concern that this exemption will soon come into force scrapped. Because if the government can increase taxes on newer cars, why not these classic models? The question on everyone’s mind is: How long will this gap last?

  • Older vehicles that were registered before 1984 still receive the tax break for the time being.
  • But Abolition of the exemption could make life even more difficult for classic car owners in the future.

There may be some relief for owners of older cars for now, but it seems more likely that this group will also be dragged into the tax burden in the coming years.

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