Drivers aged over 70 are among those affected by Vehicle Excise Duty (VED) increases that took effect on April 1. Older motorists are not exempt from VED fees based on age alone, with discounts only available to disabled drivers or owners of vehicles registered more than 40 years ago.
This means healthy over-70s using a car registered after 1986 will likely not qualify for savings and must pay the same rate as younger motorists. VED fees depend on the type of vehicle, with different tax bands based on registration date and emissions.
Fee Increases by Vehicle Type
Cars built after 2017 saw VED fees rise from £195 to £200 per year on April 1. Fees vary for registrations between 2001 and 2017, with rates calculated on emissions. The highest-polluting cars producing over 255g/km of CO2 are now charged up to £790.
Owners of modern classics registered before 2001 but after 1986 are paying up to £15 more, with total bills for engines above 1549cc now at £375 per year. Expensive Car Supplement fees, applied to new cars with a list price over £40,000 (£50,000 for EVs), also increased from £425 to £440.
Exemptions for Some Drivers
However, some older drivers with disabilities can reduce their car tax bill to zero. Motorists can apply for disability exemption if they receive the higher rate mobility component of Disability Living Allowance (DLA) or the enhanced rate mobility component of Personal Independence Payment (PIP).
Those receiving the enhanced rate mobility component of Adult Disability Payment (ADP), the Scottish Adult Disability Living Allowance, and the higher rate mobility component of Child Disability Payment can also claim exemption. The same applies to pensioners receiving the War Pensioners' Mobility Supplement and Armed Forces Independence Payment.