Major changes to vehicle excise duty are on the horizon. Labour announced the new tax changes in their Autumn Budget last year. Owners of older vehicles registered between 1985 and 2001 are set to be hit with new car tax increases as part of a major overhaul of the UK's Vehicle Excise Duty (VED). From April 1, VED rates will rise across the board, affecting every petrol and diesel owner. Here we provide the answers to 10 crucial questions about the upcoming changes. Often known as car tax, VED is a levy on owning a vehicle. The rates depend on a vehicle's age and its CO2 emissions. For instance, a new Volkswagen Golf R petrol model incurs a first-year rate of £220, followed by an annual cost of £190. Vehicles with zero or low emissions, such as electric cars, currently do not pay this tax. The exemption for vehicles with zero and low emissions will be discontinued. This major change is set to be implemented from Tuesday, April 1. The policy was unveiled by then-Chancellor Jeremy Hunt of the Conservative government in November 2022, aiming to "make our motoring tax system fairer". Owners of electric vehicles (EVs) will have to pay a VED of £10 in the first year after their vehicle is registered, followed by a standard annual rate of £195 thereafter. Also referred to as the luxury car tax, this applies to vehicles with a list price over £40,000, requiring owners to pay an additional annual fee on top of the standard rate for the second to sixth years following registration. From April 1, this supplement will increase to £425. Starting from April 1, newly registered EVs will also be subject to the expensive car supplement. Electric vehicles (EVs) typically cost more than their petrol and diesel counterparts, making them more susceptible to the expensive car supplement. This has sparked concerns that it could deter some individuals from making the switch to electric. Join our WhatsApp Top Stories and, Breaking News group by clicking this link