Petrol and diesel car owners will face new Vehicle Excise Duty (VED) increases in a few weeks, potentially resulting in hundreds of pounds more in charges. The VED fees are scheduled to rise in line with the Retail Price Index (RPI) inflation from April 1, 2024.
Despite HM Revenue and Customs (HMRC) stating that rates “will remain unchanged in real terms,” it mentioned that the scheme will “impact” vehicle owners. However, fully electric vehicle owners are still exempt from paying VED fees, although there are plans to change this from April 2025.
The cost of VED bills is dependent on the vehicle’s age and its environmental impact. Cars registered on or after April 1, 2017, will incur a £10 increase, with standard rates rising from £180 to £190.
Additionally, owners who purchased brand new cars worth over £40,000 in the last five years will face an Expensive Car Supplement, adding an extra £410 to their bill, up from £390 over the financial year. Those who have bought brand-new cars in the past 12 months will be most affected by these changes.
For older vehicles, cars registered on or after March 1, 2001, are grouped into bands based on their emissions. Motorists in the highest Band M category will pay £40 more, with charges rising from £695 to £735 per year.
Band L costs will increase by £35, while Band K and J rates will rise by £20. Prices will also go up for lower polluting vehicles, but by less across the other categories.
Vehicles with engines above 1549cc and registered before March 1, 2001, could face a £20 increase, while those below 1549cc will see a £10 rise.
