Brexit held back beneficial classic car tax changes but there is ‘some hope’

Martin Lewis gives money-saving advice on VED car tax

We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info

The Government rejected calls to reduce the historic tax exemption age from 40 years to 30 years last month. It came after young motoring enthusiast Stephen Hearse-Morgan started an online poll calling for the change, which has received over 14,000 signatures.

FBHVC Communication Director Wayne Scott said although the Government turned down the request, the comments have given enthusiasts “some hope”.

Speaking to Classic Car Weekly, he said: “Had there not been Brexit and the pandemic, the answer may well have been a different one.

“It’s good that they’ve left us with some hope and that we continue to have a rolling tax exemption for classic vehicles.”

The Government was forced to issue a response to the petition after it passed the 10,000 mark.

They rejected the petition’s calls to reduce the historic tax exemption as current measures helped to differentiate between classic and old cars.

However, the Treasury only confirmed there were “no current plans” for the change suggesting the idea has not been completely ditched.

Meanwhile, the Government also confirmed VED and tax charges would be “kept under review”.

IT said: “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.

Classic car owners will not get a tax reduction this year – ‘no plans’ [COMMENT]
Classic car tax exemption changes are a ‘great idea’ says experts [INSIGHT]
Classic car owners could face massive tax changes [ANALYSIS]

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

“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.”

The Government confirmed classic cars were “an important part” of the country’s heritage.

Save 10% on your MOT

It’s Kwik Fits’ Midsommer Madness sale and you can take 10% off your MOT Test with the UK’s #1 MOT tester – just click the link to book online.

Source: Read Full Article