As the cost of living continues to bite, motorists are being urged to consider older vehicles that qualify for ultra-low tax bands. A number of diesel and petrol cars registered before April 2017 are eligible for annual Vehicle Excise Duty of as little as £20.
With road tax reforms due in April 2025, second-hand buyers have a limited window to take advantage of favourable emissions-based rates. From next year, even electric vehicles will lose their current tax exemption.
Low-tax vehicles registered before 2017 offer major savings
The most significant factor influencing low annual road tax costs in the UK is the vehicle’s registration date. Cars first registered before 1 April 2017 operate under a CO2 emissions-based system, which, according to The Sun, allows some models to qualify for tax rates as low as £20 or even zero.
Diesel models such as the BMW 218d and 220d, when registered prior to April 2017, fall into the £20 or £35 per year category. Similarly, the Mazda 3 1.5d SkyActiv model is tax-free, with the 2.2 diesel variant taxed at £20 annually. These vehicles combine premium features with low emissions, making them cost-effective for drivers seeking quality and efficiency.
Small hatchbacks also offer notable benefits. Diesel Ford Fiesta models from 2008–2017, including the 1.5 and 1.6 TDCi engines, are taxed at £20 per year. Petrol options, such as the 1.0 EcoBoost, provide both strong fuel economy and low tax rates.
Other contenders include the Hyundai i10 1.0 SE Blue and 1.2 SE models, as well as the MINI Hatch with its 1.5 Cooper D engine—all qualifying for road tax under £35.
Upcoming changes make timing crucial for used car buyers
From April 2025, all new cars—including electric vehicles—will be subject to Vehicle Excise Duty. This change will remove the current exemption for EVs, with only models registered before 31 March 2017 retaining access to the £20 annual rate. According to The Sun, this deadline has intensified interest in pre-2017 second-hand cars.
Post-2017 models, by contrast, are taxed under a standardised flat rate of £195 annually after the first year. High-value vehicles exceeding £40,000 face the added burden of the “Expensive Car Supplement,” increasing their tax liability.
Popular family and compact SUVs are also among the low-tax options. The Nissan Qashqai 1.5 dCi (2014–2017) and the Renault Kadjar with its 1.5 or 1.6 diesel engine offer annual tax rates between £20 and £35. The Volkswagen Golf and Peugeot 308 diesel models similarly fall within these low-cost brackets.
For those aiming to minimise motoring costs, understanding the link between registration date and emissions-based tax bands remains key. Buyers have less than a year to take advantage of the current system before the new VED rules come into force.
