These drivers are exempt from Labour's new VED car tax fees introduced in days

Thousands of motorists will be completely exempt from new Vehicle Excise Duty (VED) car tax changes coming into effect in just days. VED rates are set for their largest overhaul in years from April 1, 2025 with Labour introducing major updates to first-year rates.

Owners of brand new combustion models face rises of up to £2,745 with total bills set to reach almost £5,500 in a major blow. However, despite the massive increases for petrol and diesel owners, certain classic car owners will not pay a penny. Historic vehicle tax exemption rules mean that any vehicles older than 40 years old do not need to pay road tax whatsoever.

It means models registered before April 1985 will be issued a £0 VED bill when they tax their vehicles.

Classic car insurance experts at Heritage explained: “Historic vehicles are cars, vans and motorcycles that are at least 40 years old and classified as such by the DVLA.

“Once a vehicle is officially registered as historic, you no longer need to pay vehicle tax (VED). This exemption applies from the start of the financial year after your car’s 40th birthday.

“A car built before 1 January 1983 qualifies from 1 April 2023. A car built before 1 January 1984 qualifies from 1 April 2024. A car built before 1 January 1985 qualifies from 1 April 2025.”

Despite not being liable for any VED fees, motorists must remember to still tax their vehicle with the DVLA.

Accidentally forgetting to do this could develop into a major issue with road users set to be hit with serious penalties.

GOV.UK commented: “DVLA will send you a vehicle tax reminder letter before your tax is due to expire. You’ll need to tax your vehicle, but will not need to pay.

“It’s illegal to drive your vehicle if you have not taxed it. You can be fined £80 if you do not tax your vehicle on time.”

Drivers can update their vehicle tax at any time in just minutes through GOV.UK’s office website.

However, individuals without access to the internet can also apply for vehicle tax on the high street with services available at Post Office sites.

Drivers will need to bring their vehicle log book (V5C) document, a vehicle tax reminder letter, evidence of a current MOR test and proof a car is exempt.