Older vehicles registered between these dates face a car tax rise in weeks. Drivers who bought cars over a 16-year spell are set to be hit with higher Vehicle Excise Duty (VED) car tax under the Labour Party government.
Motors registered between 1985 and 2001 will be hit with new car tax rises. Costs are set to rise across all categories with the most polluting models emitting over 255g/km of CO2 paying up to £25 more under the shake up.
Under the new plan, zero-emission cars will be placed in the lowest tax rate, with a VED of £10 for the first year and £165 per year thereafter. Additionally, the exemption for EVs from the “expensive car supplement” will be eliminated.
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This means that any car with a list price of £40,000 or more will incur an additional £355 charge for five years beginning in the second year of ownership, after which the rate will return to the standard rate.
This could result in an annual cost of around £520 for some EV owners. The changes to VED for zero-emission cars will also be backdated to vehicles registered after April 1, 2017.
And this means that individuals currently paying no VED will now be required to pay the standard rate of £165 per year.
Low- and zero-emission cars registered between March 1, 2001 and March 30, 2017 and currently in Band A will be moved to Band B and will have to pay £20 per year.
This will make these vehicles cheaper to operate than those registered after the 2017 cut-off.
Zero-emission vans will also be subject to the £290 rate for ICE light goods vehicles, while zero-emission motorcycles and trikes will be moved to the lowest band, currently at £22.
Cars classified as “alternative fuels,” which currently receive a small discount on the standard rate, will also be moved to the £165 rate.
