Classic Car VED Exemption

To change the tax exemption laws for historic motor cars and return to the rolling 25-year tax-break, dropped in 1997.

 

Why does this matter?

Many owners wish to preserve our motoring heritage and vehicles over 25 years old are generally used for shows giving pleasure to the public, have very limited mileages and therefore contribute little to increased carbon emissions.

Suggested by and tagged , , , , , , . 19 Comments.

19 Responses to Classic Car VED Exemption

  1. keith Barnard says:

    My 1978 Datsun Cedric is a very rare car and is in excellent condition. I use it for shows and the very few times we need a second car.
    Yours faithfully

    Keith Barnard

  2. Mark Swan says:

    Well, of course it raises the whole issue and debate of road pricing – i.e. flat rate or charge for usage. As a charge for usage proponent, I favour any taxing system that rewards low mileage. Classic cars fit in that category, in my opinion. My car, for example, is a rare Reliant Scimitar S1600 soft top, built in 1986; it does less that 1000 miles a year. Even the 6 months fee of £118.25 for Summer usage only is exhorbitant. So, bring back the previous system, I say.

  3. Dominic Blocksidge says:

    As the owner of a mk 1 vw golf convertable I have only covered 2000 miles in the last twelve months and used the car only on dry weather days.I say bring back the road tax exemption rule for vehicles of twenty five yaers old.

  4. Malcolm Barnes says:

    I am planning to restore my 21st birthday present, a Bultaco Alpina 250 motorbike 1st registered November 1973. As a result of the legislation I will have to pay full VED, even though the bike was, according to the owners club, manufactured in 1971! This rule needs revising to 25 years plus exempt!

  5. Jason Clarkson says:

    I have Mk1 Golf GTI sat in my garage as it has done for the past 10years due the rediculous change of legislation. I previously drove it less than 1000 miles a year. I believe that all the old cars are not only helping preserve some variety/history in our ever increasing same same automobile society but also help environmental issues!

  6. john jeffries says:

    Classic car and motorcycles are particularly popular at the moment. With many small shows throughout the country creating more interest. Sadly a law that discourages enthusiasts from preserving these engineering marvels of the past. Makes absolutely no sense….Well done the Uk Government for yet again stunting the growth of a market that could inject needed income into the coffers for the sake of their punitive taxation policy on future classics…Remember its nice to see the vehicles you used to dream of owning when you were growing up….

  7. Charlie Ford says:

    I am in the process of buying a “classic” motor caravan. A “bay window, devon” V W Campervan that was built in 1976; ie this vehicle is 35 years old. In 5 years time it will be 40 years old. I will have to pay tax every year, whereas other vehicles that may be a couple of years older, haven’t been paying tax since 1997. I don’t feel it is exactly “fair” and it certainly does dissuade people from keeping beautiful old vehicles on the road.

  8. Lynn Sparks says:

    Great! There’s me thinking my car will be roadtax exempt next year only to find out its actually not. Bloody gov kept that quiet!

    I own a 1986 BMW 525e (ETA). I bought my first one in 1998 and this is the 3rd one I’v owned. It was only due to pure luck that I found out it was the only BMW that is classed as a classic car without having to be ‘ancient’! I do use it for my ‘everyday’ car but its insured under a Classic Car Policy with limited milage.

    Classic cars are part of our history and heritage and I dont see why I/we should have to pay the same road tax as ‘Mr Company Rep’ who’s yearly milage could read as the milage from the Earth to the Moon (yes i know a slight exageration,lol)when im restricted to limited milage! :[

  9. Flash says:

    to do us all a favour,the idea of doing away with the tax disc totally would be easyer & fair to us all. pay as you go ? why pay for something you dont use.my bikes that i love cost me a fortune in tax but use them rarely due to weather & work etc.A system where i pay when i use it would be so much easyer

  10. alan says:

    How about re introduce rolling exemption,but make it at 35 or 40 years old, so the tax revenue loss to the gov’t is smaller, and it will encourage people to hang on to old cars/classics rather than the huge environmental impact of manufacturing new.Plus sorts the wheat from the chaff.(someone needs to want it alot to keep it alive 40 years)

  11. Mike Unsworth says:

    Great idea.Re-introduce the rolling 25year policy.My Land Rover was manufactured on the 1st Feb 1973,it is exactly 1 month to new,to be tax exempt.Just my luck.

  12. Holly says:

    Given the current economical climate and the fact that more people are hanging on to certain older models of cars sometimes for preservation purposes but also (in my case) in order to keep costs down, I absolutely support the idea of a rolling 25-year exemption.
    There are certain people who cannot afford a newer model but need a car for various reasons- it would be a way of acknowledging this. I agree with all prvious comments supporting the previous legislation. (Lynn Sparks- I was in a similar position to you!)

  13. Holly says:

    Given the current economical climate and the fact that more people are hanging on to certain older models of cars sometimes for preservation purposes but also (in my case) in order to keep costs down, I absolutely support the idea of a rolling 25-year exemption.
    There are certain people who cannot afford a newer model but need a car for various reasons- it would be a way of acknowledging this. I agree with all prvious comments supporting the previous legislation. (Lynn Sparks- I was in a similar position to you!)

  14. Henry Scrope says:

    Good idea.

    The exemption from Vehicle Excise Duty duty for cars and motor cycles over 25 years old was announced in the House of Commons on 28th Nov 1995. It was restricted to cars made before 1st Jan 1973 in the 1998 budget.

    I think this restriction was too draconian. Restoring the original “rolling 25 years old” exemption might be going too far; if so it should be 30 or perhaps even 40 years – but it certainly should be a rolling period. An arbitrary fixed date is ludicrous and gets more silly with each year that passes.

  15. simon says:

    I agree. In the current ( absurd!) “green” tax climate such a car will surely create less pollution than even an exempt modern car that is used a lot more.

  16. malcolm archer says:

    So the gov. thinks it loses too much? OK then why not put a fixed tax on any 4 wheel say £20 per annum and two wheel £10 p.a. with the stipulation they must be roadworthy of course, and insured. then the 25yr rule wouldn’t seem so bad.

  17. phil cash says:

    The whole VED situation is unfair. We have a van conversion that does< 5000 miles/year, yet a commercial equivalent user who does 100000 miles pays the same rate. The Gov tries to justify the rates on emissions, but my van pollutes 20 times less than the example I quote so as in so many gov statements the reasoning majes nonsense. The VED should be nominal – say £10 to cover admin and to ensure insured & mot'd, but other than that, any tax to be fair and relate squarely to emissions can only be laid on fuel to represent the govs aim of taxing for emission and road use.

  18. Philip Miller says:

    I run a motor -that was made on 14/feb1974 when does this become a historical taxation ?? help .

  19. Mark says:

    I have a 1973 MGBGT V8 it has covered 3000 miles in 4 years and costs a fortune to tax for 6 months. I amt taxed on the engine size not the usage I dont drive it more than 30 days over the summer in a year, when will my vehicle be tax exempt?

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