
Older cars registered more than 20 years ago are paying up to £600 per year in car tax bills, according to experts. Almost all petrol, diesel and electric car owners are now subjected to Vehicle Excise Duty (VED) fees to use the roads.
Newer models built after 2017 pay a standard VED rate of just £195 per year, but this is different for older vehicles still on the road. Between 2001 and 2017, vehicles paid VED on a sliding scale of car tax bands with charges calculated on the total emissions of models produced. Higher-polluting models are set to pay more under the rules, with many paying hundreds of pounds to use the roads.
Cars2Buy said: "Cars registered between 2001 and 2017 will continue to be taxed based on their CO2 emissions, with rates ranging from £20 to £600 per year depending on the vehicle's environmental impact."
Cars registered in 2001 will have number plates with the '01' or '51' age identifiers - while cars in 2017 will have plates reading either '17' or '67'. Any cars built between these years ('01' to '17' or '51' to '67') could be affected.
However, experts at the RAC have suggested road users could be paying even more than £600 due to rises in recent years. VED rates usually increase every year in line with Retail Price Index (RPI) inflation, with the most recent rise coming in April 2025.
Band L covers vehicles emitting between 226 and 255g/km of CO2 with the RAC claiming that annual VED bills stand at £735 per year.
Meanwhile, those in the highest Band M are paying £760 per year to keep vehicles emitting over 255g/km on the roads. However, fees can be higher if motorists decide against a single annual payment and instead pay in monthly instalments.
The RAC said: "VED road tax rates for cars first registered after March 2001 and before April 2017 are split across 13 bands depending on the CO2 emissions of the vehicle. In basic terms, the lower the CO2, the lower the tax band.
"Since 2025 VED rule changes, cars with CO2 emissions below 100g/km no longer qualify for free road tax. This means you now have to pay £20 a year for VED if your car emits up to 100g/km of CO2. Road tax for petrol and diesel cars registered after March 2001 and before April 2017 are broadly the same."
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