Owners of older vehicles will also be affected by widespread car tax updates set to come into effect from the spring.
Older petrol and diesel cars will soon pay more car tax (Image: Getty)
Older petrol and diesel vehicles first registered between 1984 and 2001 will be impacted by new Vehicle Excise Duty (VED) car tax fees in months.
VED rates rise annually based on Retail Price Index (RPI) inflation levels with the latest increase set to come into effect in April 2025.
Unlike more modern vehicles which pay VED based on vehicle emissions levels, older cars pay based on the size of their engine capacity.
Meanwhile, vehicles first registered before 1984 are completely exempt from charges due to historic vehicle tax exemption rules.
It means many petrol and diesel owners will feel the sting with rates set to rise across the board.
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Cars built between 1984 and 2001 pay rates based on engine capacity (Image: Getty)
According to motoring experts at Pete Barden, older cars with an engine capacity of 1549cc and below will pay £10 more from the spring.
Annual rates for these motorists will rise from the current £210 to reach £220 per annum, from April 2025.
Vehicles above 1549cc will pay £360, up from the current £345 rate paid by motorists today.
The £15 increase may appear a lot but is actually less than the increase for drivers in this category 12 months ago.
Last year, rates were increased by £20 with fees jumping up from the previous £325 rate charged to road users in the 2023/24 financial year.
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Earlier this Autumn, HM Revenue and Customs officially confirmed that VED rates would increase with inflation from 2025.
However, it’s not just older models that will feel the impact with almost every driver set to notice some increases.
The standard VED rate will rise for newer models in line with inflation while Labour has specifically increased first-year rates on petrol and diesel vehicles.
The new rules will see owners of brand-new polluting cars pay double with some charged almost £5,500 a year.
Electric car owners will also pay VED for the first time with exemptions for zero-emission vehicles ending.
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HMRC said: “This measure will uprate the Vehicle Excise Duty rates for cars (excluding first-year rates) and all other rates for vans, motorcycles and motorcycle trade licences by the Retail Price Index, and will reflect the inclusion of zero-emission vehicles in Vehicle Excise Duty from 1 April 2025.
“This is a standard uprating to come into effect from 1 April 2025.”
Although HMRC said the annual increase would not raise any additional revenue for the Treasury, they accepted that road users will be affected nonetheless.
They added: “This measure will impact on motorists owning a car, van or motorcycle or using a motorcycle trade licence. The increase in Vehicle Excise Duty rates is in line with Retail Price Index meaning rates will remain unchanged in real terms for vehicle owners.”
