Motorists with older cars registered more than 20 years ago are facing car tax bills of up to £600 annually, according to industry experts
Drivers with cars registered more than two decades ago are being hit with annual car tax bills reaching £600, industry specialists have claimed. Almost every petrol, diesel and electric car owner now faces Vehicle Excise Duty (VED) charges for using Britain’s roads.
While more recent models built after 2017 pay a flat VED rate of just £195 each year, the picture looks vastly different for older motors still on the road. Cars from 2001 to 2017 face VED payments based on a tiered system of car tax brackets, with fees determined by the total emissions produced by specific models.
Under this framework, more polluting motors are charged steeper fees, leaving many drivers forking out hundreds of pounds for road access, reports the Express.
Specialists at Cars2Buy told the publicaton: “Cars registered between 2001 and 2017 will continue to be taxed based on their CO2 emissions, with rates ranging from £20 to £600 per year depending on the vehicle’s environmental impact.”
Motors registered in 2001 feature number plates with ’01’ or ’51’ age identifiers, while 2017 vehicles display either ’17’ or ’67’ markers. Any cars built during this timeframe (’01’ to ’17’ or ’51’ to ’67’) could face these steeper charges.
However, RAC experts have warned that motorists could be shelling out significantly more than £600 following recent hikes. VED charges generally increase each year in line with Retail Price Index (RPI) inflation, with the most recent rise taking effect in April 2025.
Band L covers motors producing between 226 and 255g/km of CO2, with the RAC revealing that annual VED costs hit £735. Meanwhile, drivers in the highest Band M encounter yearly fees of £760 to keep motors emitting over 255g/km on Britain’s roads.
Nevertheless, expenses can climb higher if motorists reject a single annual payment and select monthly instalments instead. The RAC said: “VED road tax rates for cars first registered after March 2001 and before April 2017 are split across 13 bands depending on the CO2 emissions of the vehicle.
“In basic terms, the lower the CO2, the lower the tax band. Since 2025 VED rule changes, cars with CO2 emissions below 100g/km no longer qualify for free road tax.
“This means you now have to pay £20 a year for VED if your car emits up to 100g/km of CO2. Road tax for petrol and diesel cars registered after March 2001 and before April 2017 are broadly the same.”
Get all the hottest shopping deals, cash saving tips and money news straight to your phone by joining our new WhatsApp Community – The Money Saving Club. Just click this link to join https://crnch.it/eutplxS1
We also treat our community members to special offers, promotions, and adverts from us and our partners. If you don’t like our community, you can check out any time you like.
If you’re curious, you can read our Privacy Notice here https://crnch.it/jeQqC872
