Classic car owners will not get tax reduction – ‘no plans’ to reduce historic exemption

Martin Lewis gives money-saving advice on VED car tax

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The petition had called for the historic tax exemption age to be reduced from 40 years to 30 years and had received some backing. Launched by 22-year-old classic car fan Stephen Hearse-Morgan, the poll received over 13,500 signatures, promoting an official Government response.

However, the Government has refused to back the petition, confirming there were “no current plans” to change the exemption rules.

The Government said the 40 year exemption was a “fair cut off date” for historic vehicles.

They said this would better distinguish between classic cars and models which were just considered old.

Responding to the survey, they said: “The Government considers that classic vehicles are an important part of the country’s historical and cultural heritage.

“According to research by the Federation of British Historic Vehicle Clubs, in their publication The 2020 National Historic Vehicle Survey, the historic car industry employed around 34,000 people in the UK.

“Recognising the important role played by historic vehicles, the Government announced at Budget 2013 that it would be extending the cut-off date from which classic vehicles are exempt from paying Vehicle Excise Duty (VED) to 1 January 2014.

“At Budget 2014, the Government then announced that it would introduce a rolling 40-year VED exemption, which means that currently vehicles constructed before 1 January 1981 are exempt from paying VED.

“The Government set 40 years as being a fair cut-off date that distinguishes classic cars from old cars.

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“There are no current plans to reduce the tax exemption age for classic cars from 40 years to 30 years, but as with all taxes, VED is kept under review.”

Mr Hearse-Morgan said reducing the tax exemption would allow those interested in maintaining cars from the 1980s to keep some cash to spend on maintenance.

He suggested the tax changes could ensure more classic cars were preserved on the road.

Speaking to last month Tom Wood, Car and Classic spokesperson backed the new proposals.

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