Classic car owners may ‘benefit’ by ‘saving money’ under car tax pay per mile proposals

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Gary Wilson, Head of the Historic and Classic Vehicle Alliance (HCVA) said a pay per mile car tax system could be a “better scheme” for some historic vehicle owners. He said vehicles under 40-years-old which currently pay road tax would save under a pay per mile scheme.

“It needs to be looked at in the round.

“I think we need to look at it and understand what scheme might be proposed.

“When the consultation comes out we will definitely jump on it and try and understand the implications on the entire classic sector.

“For me, a classic is an older vehicle which you have a passion for.”

A report from the Federation of British Historic Vehicle Clubs (FBHVC) showed classic car owners use their vehicles a lot less than ordinary vehicles.

Historic vehicles are driven for an average of 1,200 miles per year compared to a UK average of 7,200 miles.

The report also showed classic cars are only taken for around 16 journeys per year.

Chancellor Rishi Sunak is reportedly considering a switch to a pay per mille system on the roads.

This would help fill an estimated £40billion black hole caused by the loss of fuel duty and traditional Vehicle Excise Duty (VED) rates as more drivers switch to electric cars.

The Department for Transport has previously warned revenue from motoring taxes would need to ‘keep pace” with any changes on the road.

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