Car Tax Changes Impact Older Drivers Starting April 1
The UK government’s upcoming changes to car tax will significantly impact older drivers starting April 1, 2026. Under the new rules, elderly motorists will no longer benefit from exemptions based on age.
Impact of Car Tax Changes on Older Drivers
From April 1, 2026, standard Vehicle Excise Duty (VED) fees will increase for many drivers, including older ones. All drivers, regardless of age, will be subject to the same tax regulations. Here’s a breakdown of what to expect:
- Cars registered after 2017 will see their annual VED fees rise from £195 to £200.
- Smaller vehicles with engines under 1549cc will face increased fees from £220 to £230 annually.
- No age-based exemptions will be applied, meaning healthy pensioners must pay just like other drivers.
Exemptions and Special Cases
Certain vehicles will remain exempt from these tax increases. These include:
- Vehicles used by disabled motorists, which will still be exempt from VED charges.
- Classic cars registered over 40 years ago, which will not incur annual fees.
Future Legislative Changes
The government announced these changes in the Budget 2025, emphasizing that VED rates for cars, vans, and motorcycles will be aligned with the Retail Price Index (RPI). This adjustment is expected to occur annually, leading to continual cost increases.
Electric Vehicle (EV) Owners
Electric vehicle owners will encounter less severe impacts from the changes. Here’s what they need to know:
- Older EVs registered before 2017 will retain a reduced road usage fee of £20 per year.
- First-year VED costs for new zero-emission vehicles will remain at £10.
In summary, starting April 1, 2026, older drivers will face new taxation rules which eliminate age-based exemptions. Understanding these changes will be crucial for all motorists as they prepare for increased vehicle costs in the coming years.
