From 2025, owners of older vehicles in the UK may be subject to additional taxation as the government pushes forward with its environmental agenda.
These changes are designed to encourage the use of more environmentally friendly vehicles, reduce emissions, and align with the UK's net-zero targets. However, they also raise concerns for those who rely on older cars for everyday use or as cherished classics.
In this blog, we explore the proposed changes, their potential impact on owners of older vehicles, and what steps you can take to navigate this evolving landscape.
Currently, vehicles registered before 1 March 2001 pay road tax based on their engine size, while those registered after this date are taxed based on their carbon dioxide (CO₂) emissions. From 2025, the government plans to apply stricter taxation to vehicles with higher emissions, including many older cars that were not designed to meet modern environmental standards.
Under these proposals, older petrol and diesel vehicles could face significantly increased vehicle excise duty (VED). The aim is to incentivise owners to switch to newer, lower-emission models or electric vehicles (EVs).
These changes align with broader policies such as the expansion of Clean Air Zones (CAZ) and Ultra Low Emission Zones (ULEZ) in urban areas, where older vehicles already face additional charges.
Older vehicles typically produce higher emissions than their modern counterparts. They lack the advanced technologies, such as catalytic converters or efficient fuel injection systems, that enable newer vehicles to reduce their environmental impact.
By introducing additional taxes, the government hopes to accelerate the transition to greener alternatives and decrease the environmental footprint of the UK’s vehicle fleet.
However, these measures may disproportionately affect those who rely on older vehicles for practical or economic reasons. For some, older cars are a necessity rather than a luxury, particularly in rural areas where public transport options are limited.
For others, classic cars represent a cultural and historical passion, often driven sparingly and kept in immaculate condition.
The proposed tax changes could affect older car owners in several ways:
If you own an older vehicle and are concerned about the upcoming tax changes, there are several steps you can take to minimise their impact:
For owners of older and classic cars, restoration specialists like White’s Bodyworks can help maintain your vehicle’s value and functionality in the face of changing regulations. From improving fuel efficiency to preserving the original craftsmanship of historic cars, professional restorers ensure that these vehicles remain roadworthy while respecting their heritage.
Additionally, restoration services can offer solutions to reduce emissions, such as upgrading exhaust systems or fine-tuning engines, helping your car align more closely with modern standards without losing its character.
The proposed tax changes in 2025 reflect the government’s commitment to reducing emissions and achieving its environmental goals. While these measures aim to address pressing environmental concerns, they present significant challenges for owners of older cars. Balancing sustainability with the practical and cultural value of these vehicles is a delicate task, and how the government implements these changes will be closely watched.
At White’s Bodyworks, we understand the importance of preserving older and classic cars as part of the UK’s motoring heritage.
Whether you need advice, maintenance, or full restoration services, we are here to help you navigate these changes while keeping your cherished vehicle on the road.
