If you’re over 70 and own a car, you should probably pay attention to one crucial part of your vehicle ahead of the new car tax changes coming into force in April. Failure to pay your full car tax can result in fines of either £1000 or five times the amount of tax chargeable. As of April 2025, Vehicle Excise Duty (VED) rates will increase as part of the annual update in line with Retail Price Index (RPI) inflation. This will see the standard VED fee hike up to £195 per year, which will particularly affect petrol and diesel vehicles as well as those issued before 2001. Changes are also coming to first-year VED rates and for electric vehicles.
Unfortunately for older drivers, there will be no age-related exemptions, meaning over-70s will face the same taxes as other motorists. Although, exceptions will be made for certain diagnosed disabilities. HM Revenue and Customs stated on its website: "From 1 April 2025, registered keepers of electric, zero or low emission cars, vans and motorcycles will need to pay vehicle tax in the same way as registered keepers of petrol and diesel vehicles. This change will apply to both new and existing vehicles. This new measure removes band A under the existing VED system which is currently £0. Vehicles in this band will be required to move to the first band where a rate becomes payable.”.
However, the biggest price increase will be seen with regards first-time owners of high-polluting petrol and diesel vehicles. Motorists over 70 should be careful to check emission levels of their cars, as those emitting over 255g/km of CO2 are set to pay thousands more in tax. Bills will rise from £2,745 to £5,490 per year, with prices doubling along a sliding scale of emission levels. If you’re unsure of your vehicle’s emission output, you can always search for it on the Vehicle Certification Agency website. For used cars, you can find their fuel consumption by entering its make and model, while new cars in the UK now have to display a label showing their C02 consumption. The changes to electric vehicle taxation have also been outlined. Electric cars will be charged £10 in VED in their first year on the roads but will transition to the standard rate thereafter. It has also been confirmed that the £10 annual discount for hybrid models will be scrapped.
