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Motor vehicle drivers

Tax Warning Issued to Drivers with Specific Registration Plates

Strategic Insights

— 2 min read

Motors with registration plates made between 2001 and 2017 are at risk of a tax increase due to the Vehicle Excise Duty VED shake-up introduced under the Labour Party. The change affects cars registered between 1 March 2001 and 31 March 2017, which are charged based on emissions. Those emitting more than 255g/km of CO2 will pay £735 per year, while owners of older cars emitting less than 100g/km will still pay nothing. Additionally, cars registered before 1 March 2001 are charged based on engine capacity, with owners of vehicles under 1,549cc paying £210 per year and those above paying £345.

Key Takeaways:

  • The tax increase affects cars with registration plates made between 2001 and 2017, with owners of vehicles emitting more than 255g/km of CO2 paying £735 per year.
  • Cars registered between 1 March 2001 and 31 March 2017 are charged based on emissions, with a £10 increase compared to 2024 rates.
  • Cars registered before 1 March 2001 are charged based on engine capacity, with owners of vehicles under 1,549cc paying £210 per year and those above paying £345.
  • The government considers cars older than those to be "historic vehicles" and exempt from paying road tax or undergoing an annual MOT test.
  • Drivers using E10 fuel across the UK are warned of inflated fuel costs, with the Renewable Transport Fuel Obligation contributing an average of 3.5p per litre to unleaded petrol and six pence to diesel prices.
  • The E10 rollout has pushed UK fuel costs upward for drivers and road users nationwide, according to fresh warnings.

Statistics:

  • 100g/km: Emissions threshold for cars registered between 1 March 2001 and 31 March 2017 that pay nothing per year.
  • 255g/km: Emissions threshold for cars registered between 1 March 2001 and 31 March 2017 that pay £735 per year.
  • £735: Annual tax payment for cars registered between 1 March 2001 and 31 March 2017 emitting more than 255g/km of CO2.
  • £210: Annual tax payment for cars registered before 1 March 2001 under 1,549cc engine capacity.
  • £345: Annual tax payment for cars registered before 1 March 2001 above 1,549cc engine capacity.
  • 3.5p per litre: Average contribution to unleaded petrol prices of the Renewable Transport Fuel Obligation.
  • 6 pence: Average contribution to diesel prices of the Renewable Transport Fuel Obligation.

Sources:

  • "E10 petrol: UK fuel costs soar due to ethanol prices" - The Express
  • "VED shake-up: Drivers warned of £735-a-year tax increase" - Hagerty
  • "UK fuel costs hit by E10 ethanol prices, research finds" - University of Warwick

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