Car Tax Hike: What You Need to Know About the Increase in Vehicle Excise Duty

Get ready for the upcoming car tax hike affecting millions of drivers. Discover how the increase in Vehicle Excise Duty (VED) will impact you and your vehicle, from emission bands to engine sizes.

Car Tax Hike: What’s Changing?Hey there, folks! Buckle up because we’re diving into the nitty-gritty of the upcoming Car Tax Hike. From April 1, 2024, changes to Vehicle Excise Duty (VED) will be hitting millions of drivers right in the wallet. So, let’s break it down and see how it’ll affect you.Impact on High-Emission Vehicles

If you’re driving around in a petrol or diesel car that’s a bit of a CO2-spewing machine, you might want to brace yourself. Owners of new cars emitting over 255 g/km of CO2 will face a hefty £140 increase in road tax fees in the first year alone. Yep, that’s £140 more than what you paid last year. Ouch!

Rising Charges Across Emission Bands

But wait, there’s more! It’s not just the heavy polluters feeling the pinch. Cars emitting between 226 and 255 g/km will see their fees shoot up by £120. Cleaner cars emitting between 191 and 225 g/km won’t escape unscathed either, with charges climbing by nearly £100.

Standard Rates for New Models

Even if your car isn’t pumping out clouds of CO2 like there’s no tomorrow, you’re not off the hook. Standard rates for models first registered after April 2017 will creep up by £10 per year. It might not sound like much, but hey, every penny counts, right?

Older Vehicles Feeling the Squeeze

If your trusty steed has been on the road since before 2001, you’re not safe either. The most polluting cars will see their charges rise from £695 to £735, while others will face smaller but still noticeable increases.

Engine Size Matters

Got a little engine under the hood? Well, get ready to dig a little deeper into your pockets. Cars with engines smaller than 1,549cc will now cost you £210 per year in vehicle tax, up from £200. And if you’ve got a bigger engine, expect to pay £345 instead of £325. It’s not the end of the world, but it’s definitely worth knowing.

Electric Cars: Still in the Clear

Now, here’s a silver lining for all you eco-warriors out there. Electric cars are still cruising along tax-free for another year. Yep, you heard that right. No VED charges for electric vehicles until April 2025. So, if you’re thinking of making the switch, now might be the time.

Classic Car Owners Rejoice

And last but not least, for all you classic car enthusiasts, there’s a glimmer of hope. If your pride and joy is more than 40 years old, you can wave goodbye to those pesky fees by applying for a historic vehicle tax exemption.

Wrap-Up: What’s Next?

So, there you have it, folks. The lowdown on the upcoming Car Tax Hike and how it’ll affect you and your wheels. Whether you’re driving a gas guzzler or an eco-friendly electric car, it’s essential to stay informed about these changes. So, keep your eyes on the road and your wallet in check. Until next time, drive safe!