The zero rate of VED for cars over 25 years was introduced by the last Conservative Government.  

It was then quietly changed to a fixed date in Gordon Brown's first budget.


It should now revert back to being a rolling date for vehicles over 25 years.

Why is this idea important?

Owning, maintaining, restoring & cherishing classic cars is a very British thing.  The classic car movement provides enjoyment, not only for those who own the cars, but by all those who see them.

The industry of providing support  for the cars/owners (ie. parts, servicing, restoration services etc.) makes a significant contribution to the economy.

Many cars are only driven for a very small amount each year – one or two thousand miles max.  

The VED, costing hundreds of pounds, means that the "per mile" cost of the VED is excessive and often means that the cars in question are not driven for a year and just left in a garage.  (When this happens, no money is spent maintaining, servicing etc. – depriving the economy of that spend).


It is wrong that a car that was 26 years old when Gordon Brown fixed the date is considered as "Historic", whereas a car that is 35 years old today is not.

2 Replies to “Classic/Historic Cars & VED”

  1. 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 1998 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.

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