A campaign fighting to rescue thousands of serviceable vehicles from the scrapheap after becoming ensnared in a ‘tax trap’ is nearing a significant milestone. Motorists are furious that some drivers will face paying nearly £800 annually in tax from this April following additional Vehicle Excise Duty increases.

The term “tax trap” has been coined because these vehicles now command minimal value – frequently under £1,500 – meaning the yearly tax bill can account for 25-50% of the car’s entire worth. This economic disparity is what typically triggers “scrappage by taxation,” whereby owners dispose of a perfectly serviceable vehicle simply because the tax charge proves uneconomical.

Yet scientists have determined that maintaining an older vehicle on Britain’s roads is considerably more environmentally sound than scrapping a car and purchasing a newly-manufactured replacement. The Guardian revealed that manufacturing a medium-sized new car may produce more than 17 tonnes of CO2e – nearly equivalent to three years’ worth of gas and electricity consumption in the average UK household.

Mike Berners-Lee and Duncan Clark wrote: “With this in mind, unless you do very high mileage or have a real gas-guzzler, it generally makes sense to keep your old car for as long as it is reliable – and to look after it carefully to extend its life as long as possible. If you make a car last to 200,000 miles rather than 100,000, then the emissions for each mile the car does in its lifetime may drop by as much as 50%, as a result of getting more distance out of the initial manufacturing emissions.” It’s only when a vehicle reaches 40 years old that it becomes ‘safe’ and exempt from tax as a ‘classic’.

A petition on the parliament website has now attracted nearly 50,000 signatures urging the government to slash Vehicle Excise Duty by 50% for vehicles aged between 20 and 39 years. Should it secure 100,000 supporters, it will trigger a Commons debate, placing pressure on Chancellor Rachel Reeves to implement reforms.

Many of the most sought-after cars from two decades ago are now practically valueless and being sent to the scrapyard because the tax burden has become prohibitive.

This means vehicles producing more than 225g of CO2 emissions per kilometre face Vehicle Excise Duty (VED) charges – with those producing 201-225g/km paying £430, 226-255g/km £735 and over 255g/km £750. The bands are scheduled to increase, with the £735 rising to £760 and the £750 over 255g/km expected to reach £790 from April 2026.

It’s not just luxury SUVs with massive engines that are being affected – everyday family vehicles like Ford Mondeos, Saabs, VW Golfs and Vauxhall Zafiras are also feeling the pinch. Reports suggest that people are scrapping their cars due to the exorbitant annual tax bill, which often matches the vehicle’s value.

Most cars registered before 2001 are taxed based on engine size. Anything below 1,549cc incurs a £229 annual charge, whilst vehicles with a cubic capacity above this – whether it’s a Lada or a Lamborghini – are levied £360 per year. Following this, emission level bands were introduced, although cars registered between March 2001 and 23 March 2006 had the maximum rate capped at the Band K rate, currently standing at £430. Experts argue that this is rendering certain models virtually worthless, leading to them being scrapped or shipped abroad to countries where buyers appreciate these bargain vehicles, many of which are on the verge of achieving classic status.

Whilst owners of high-end supercars and V8-engined 4x4s might not garner much sympathy for their hefty tax bills, the regulations also penalise more commonplace sporty models such as the Audi TT 1.8 and Vauxhall Zafira VXR, larger-engined versions of the Ford Mondeo and even a Volkswagen Golf.

10 popular models caught in the VED trap

• Model Annual // road tax rate
• Saab 900 Convertible £735
• Land Rover Freelander 2 i6 £760
• Audi TT 1.8T £735
• Ford Galaxy 2.3 £735
• Jaguar X-Type 2.0-litre Auto £735
• Subaru Forester 2.5 XT £735
• Volkswagen Golf R32 £760
• Chrysler PT Cruiser £735
• Vauxhall Zafira VXR £735
• Ford Mondeo V6 £735

Expected new 2026-2027 car tax rates for vehicles registered between March 1, 2001, and April 1, 2017

• Up to 100g/km – Remains at £20
• Between 101 and 110g/km – Remains at £20
• Between 111 and 120g/km – Remains at £35
• Between 121 and 130g/km – Rising from £165 to £170
• Between 131 and 140g/km – Rising from £195 to £200
• Between 141 and 150g/km – Rising from £215 to £225
• Between 151 and 165g/km – Rising from £265 to £275
• Between 166 and 175g/km – Rising from £315 to £325
• Between 176 and 185g/km – Rising from £345 to £360
• Between 186 and 200g/km – Rising from £395 to £410
• Between 201 and 225g/km – Rising from £430 to £445
• Between 226 and 255g/km – Rising from £735 to £760
• Over 255g/km – Rising from £750 to £790

Motorists seeking the additional traction of all-wheel-drive might consider a Land Rover Freelander or Subaru Forester as ideal and more economical than a large 4×4, yet some models still fall into the highest tax bands and could cost over £800 annually to tax.

The petition states: “Introduce a 50% VED reduction for cars aged 20–39. High taxes force functional vehicles to be scrapped, creating a “disposable” culture. Keeping existing cars is greener than building new ones, as it preserves embedded carbon. This “Young-Timer” bracket supports the circular economy and UK heritage.

“Manufacturing a new car creates massive carbon debt. We must transition from a “disposable” car culture to a circular economy. Keeping a functional 20-year-old car on the road is often greener than building a new one, as it preserves the embedded carbon already spent. Current VED rates force many well-maintained cars to be scrapped prematurely. We call for a 50% “Transition to Historic” tax discount to encourage repair, support the UK heritage industry, and reflect the low mileage of modern classics.”

As the petition garnered 10,000 signatures, the Treasury has issued a response. It said: “The Government has no plans to reduce Vehicle Excise Duty liabilities for vehicles aged 20 to 39 years. The Government keeps all taxes under review and the Chancellor makes decisions at fiscal events.

“Revenue from motoring taxes helps ensure we can continue to fund the vital public services and infrastructure that people and families across the UK expect. For example, by 2029/30, the government will commit over £2 billion annually for local authorities to repair, renew and fix potholes on their roads – doubling funding since coming into office. This record level of funding will enable the government to exceed its manifesto commitment to fix an additional 1 million potholes per year by the end of the Parliament.”

To read the petition, sign up and view the full Treasury response, click here.