Drivers have been taken by surprise following changes to Vehicle Excise Duty (VED) that now impose a charge on older, low-emission cars. Vehicles emitting under 100 g/km of CO2 and registered between 2001 and 2017 previously benefited from a zero-rate band, meaning no road tax was payable. However, the Labour government has abolished this exemption, introducing an annual fee of £20 for such vehicles since April 2025.
Expert Reaction to the VED Change
Andy Wood, a tax expert from Tax Barrister UK, commented: "The removal of the zero-rate band for cars emitting under 100g/km has caught some drivers off guard because many had become used to paying nothing at all. While £20 may not sound substantial on its own, it reflects a wider shift towards bringing more vehicles into the VED system regardless of emissions performance."
Shahzad Sheik, founder and presenter of the YouTube channel @BrownCarGuy, warned that these fees are likely to increase over time. He stated: "These are the cars that arguably are treated harshest of all because they fit under a completely different VED regime, one based purely on official CO2 emissions figures from a time when nobody really imagined that those numbers would still matter quite this much."
Official VED Rates for 2025-2026
HMRC and HM Treasury have confirmed the VED rates for the coming year. For vehicles registered between March 1, 2001, and April 1, 2017, the charges are as follows:
- Emissions up to 100g/km: £20
- Between 101 and 110g/km: £20
- Between 111 and 120g/km: £35
- Between 121 and 130g/km: £170
- Between 131 and 140g/km: £200
- Between 141 and 150g/km: £225
- Between 151 and 165g/km: £275
- Between 166 and 175g/km: £325
- Between 176 and 185g/km: £360
- Between 186 and 200g/km: £410
- Between 201 and 225g/km: £445
- Between 226 and 255g/km: £760
- Over 255g/km: £790
Drivers are advised to check their vehicle's CO2 emissions and corresponding VED band to understand their new tax liability.
