Petrol and diesel drivers facing significant Vehicle Excise Duty (VED) increases from April 1, 2026, can utilize a key exemption to sidestep higher costs. Shahzad Sheikh, founder and presenter of the YouTube channel @BrownCarGuy, highlights a straightforward strategy for motorists aiming to minimize expenses.
Annual VED Adjustments Ahead
VED rates rise annually to match inflation, impacting nearly all petrol, diesel, and electric vehicles, including those registered as far back as 1987. Vehicles from 1987 to 2001 face charges based on engine size rather than emissions. Models with engines of 1549cc or smaller will pay £230 starting April, marking a £10 increase. Larger engines over 1549cc incur £375, up £15 from the previous £360.
Historic Vehicle Status: The 40-Year Exemption
One group of vehicles escapes VED entirely: those over 40 years old qualify for historic status on a rolling basis. Sheikh explains, “There is one genuine escape route left. If your car is over 40 years old, it qualifies for historic vehicle status, which means VED exemption on a rolling 40-year basis.”
Owners can retain their vehicle until it reaches this threshold or purchase a qualifying classic model. Cars registered before January 1, 1986, enter the historic tax class from April, requiring taxation but incurring no fee.
Statutory Off Road Notification (SORN) Option
Motorists taking vehicles off the road must declare a Statutory Off Road Notification (SORN). This halts VED charges and refunds any prepaid tax. However, SORN vehicles cannot be driven or parked on public roads.
Sheikh advises, “So, yes, if you really want to beat the system, the answer is simple. Hold onto your car, maybe even put it away somewhere, and just wait until it hits 40 years old, or just buy a 40-year-old car.” This approach offers a practical path for classic car enthusiasts amid rising motoring costs.
