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Owners of older petrol and diesel vehicles produced over 20 years ago will face another rise in car tax fees within months.
Vehicle Excise Duty (VED) rates will increase across the board from April 1, 2024 with older models also in the firing line for higher fees.
According to finance experts at Pete Barden cars and vans registered before 1 March 2001 will see a slight rise from next Spring.
Those with an engine zone of 1549cc and below will likely see costs rise from £200 to £210 per annum.
This comes just a year after a £20 increase was recorded when fees jumped from £180 to £200 between 2022/23 and 2023/24.
Vehicles with engines above 1549cc will soar even more with prices rising from £325 to £345 for the 2024/25 season.
This comes after a £30 rise between 2022/23 and 2023/24 when costs went from £295 to £325.
HM Revenue and Customs (HMRC) has confirmed VED prices will increase with Retail Price Index (RPI) inflation from April.
The inflationary increase means charges will “remain unchanged in real terms” for vehicle owners.
However, the Government has confirmed that the measure will still leave an impact on road users owning a car, van or motorcycles.
Officials also stressed that raising fees was “fair” despite many struggling with the cost of living crisis.
HMRC explained: “Increasing VED rates by RPI in tax year 2024 to 2025 will ensure that VED receipts are maintained in real terms and that motorists make a fair contribution to the public finances.”
Pete Barden has predicted car tax rates will rise by less than six percent in some consolation to road users.
This will see the average fee for vehicles registered after April 1027 rise from £180 to £190 per annum.
However, those with the most polluting petrol and diesel models will be most affected by the changes.
Those purchasing brand-new cars emitting over 255g/km of CO2 will be slapped with an extra £140 in VED fees in year one.
The total bill will be a staggering £2,745 compared to the current £2,605 charge.
The Treasury added: “The Government will uprate VED rates for cars, vans and motorcycles in line with RPI from 1 April 2024 in the Autumn Finance Bill 2023. To support the haulage sector, VED for HGVs and the HGV levy will both remain at 2023-24 rates for 2024-25.”
