Overview
- The Government said it has no plans to cut Vehicle Excise Duty for cars aged 20 to 39, adding that tax decisions rest with the Chancellor at fiscal events.
- A parliamentary petition calling for a 50% VED discount for these ‘young-timer’ vehicles has about 39,915 signatures and needs 100,000 by August 6 to be considered for debate.
- Under the rolling 40-year exemption introduced in 2014, vehicles built before January 1, 1985 are currently VED-free, extending to those built before January 1, 1986 from April 1, 2026.
- The RAC expects the standard VED rate for most newer cars to rise from £195 to £200 in April 2026, with several emissions bands also projected to increase and EVs starting to pay the flat rate.
- Industry voices warn high VED is pushing usable older models to be scrapped or exported, while the Treasury cites Department for Transport research showing manufacturing emissions are a minority of a car’s lifetime total and stresses VED revenue supports public services.