Cars registered before 2001 face being slapped with new car tax changes within weeks as new Vehicle Excise Duty (VED) bills are introduced. VED prices will increase across the board from April 1, with petrol, diesel and electric car owners all set to notice added costs. Cars registered after 2017 are charged a standard VED fee, rising from £195 to £200 per year, as well as first-year rates.
Vehicles built between 2001 and 2017 pay costs based on a sliding scale of 13 tax bands, with prices ranging depending on total emissions. Models registered before 1986 are completely exempt from charges due to historic tax exemption rules, but cars from 1986 to 2001 are still liable for costs.
These older vehicles will pay VED fees based solely on the size of the engine, with high-performing models paying more. Analysis from Pete Barden suggests that VED fees for cars with engines of at least 1,549cc or below will rise from £220 to £230 in a £10 increase.
The same fee was increased by £10 last year as bills rise from £210 to £220 back in April 2025. Higher-powered vehicles will pay slightly more, with prices set to increase from £360 to £375 per year.
However, the £15 increase is once again the same rise as seen in 2025 when costs were up from £345 to £360. Popular cars from the 1990s which could be affected by the change include the Ford Fiesta Mk4, Vauxhall Astra, Nissan Micra and Rover 200.
The Volkswagen Polo, BMW 3 Series and Vauxhall Cavalier were also among the best-selling models of the decade. VED is a legal requirement and motorists are obliged to pay the charges in order to get behind the wheel.
Failure to pay VED changes can result in an £80 fine but this can rise up to £1,000 if motorists continue to hold out. The DVLA has the power to clamp vehicles that do not meet VED rules in a serious blow to owners.
HM Revenue and Customs admitted that the rise in VED fees was part of a standard annual inflationary rise.
They previously explained: "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.”