New Vehicle Excise Duty (VED) updates have launched from April 1, 2025, with petrol and diesel car owners set to notice the impact. Car tax fees will rise across the board with those holding the keys to older vehicles almost 40 years old also set to feel the sting. Many road users may incorrectly believe that classic cars are always exempt from VED car tax fees, 

However, the historic tax exemption rules only apply once a model hits 40 years on the road meaning those just underneath this are still liable for charges. Experts at Pete Barden have warned models registered before March 1, 2001, will pay more from April 2025. 

“The system for cars is split into two categories of engine size – not over 1549cc and over 1549cc. In both cases, you can also pay via Direct Debit, but you’ll pay more overall.”

Cars registered after 2001 are charged VED on a sliding scale based on vehicle emissions. 

Historic tax exemption rules mean only cars first built before January 1, 1985 will qualify from April 1, 2025. 

Any car built just after this date, even by a few days, will have to pay fees for another 12 months. 

However, road users who think they may qualify for the exemption must remember to still tax their vehicle. 

Failure to do this will lead to a £2,500 fine and three penalty points in a major blow.

GOV.UK said: “You must apply for a vehicle tax exemption to stop paying vehicle tax. This is sometimes called putting a vehicle into the ‘historic tax class’.”