VED fees will increase in line with Retail Price Index (RPI) inflation from April 1, 2024.
Although HM Revenue and Customs (HMRC) claim rates “will remain unchanged in real terms”, they admit the scheme will “impact” vehicle owners.
VED rates are mostly calculated based on how much pollution a car emits meaning those with dirtier petrol and diesel models will be most affected.
Express.co.uk walks motorists through exactly what is changing and how much extra they could be forced to pay.
Who will be affected by new VED rises?
Everyone who owns a petrol, diesel or hybrid vehicle will have to pay more under the new VED rate rises this spring.
Motorists with a fully electric vehicle are still exempt from paying VED fees but there are plans to change this from April 2025.
EV owners still have to legally tax their vehicle with the DVLA even if they do not need to pay charges.
How much more will drivers of new cars have to pay?
The cost of motorists’ bills will massively vary depending on the age of a vehicle and how much it pollutes the environment.
Cars registered on or after April 1, 2017, will pay £10 more with standard rates rising from £180 to £190.
However, owners who purchased brand new machines valued at over £40,000 within the last five years will also be subjected to an Expensive Car Supplement.
This will add an extra £410 to the bill from April rising from £390 over the course of the financial year.
Those who have secured brand-new cars over the past 12 months will be the most impacted by the changes.
First-year tax rates for cars emitting more than 255 g/km will pay £140 more with bills rising to £2,745.
How much VED will older vehicles pay?
Cars first registered on or after March 1, 2001, are designated into bands based on how many emissions their car produces.
Motorists in the highest Band M category will pay £40 more with charges rising from £695 to £735 per year.
Band L costs will rise by £35, while Band K and J rates will jump by £20.
Prices will also rise for lower polluting vehicles with costs rising by less across the rest of the categories.
Vehicles with engines above 1549cc and registered before March 1, 2001, will pay £20 extra while those below 1549cc are charged just £10 more.