Classic car owners warned of new car tax changes

For most drivers, their car tax payments – or Vehicle Excise Duty (VED) – increased by 10.1 percent in line with inflation on April 1. Despite this, anyone who owns a classic car is exempt from paying vehicle tax if their car was first registered more than 40 years ago.

This means that a vehicle which was first registered in February 1983 would be eligible to qualify as a historic vehicle from April 1, 2023.

Drivers should check their V5C registration certification or logbook, to confirm how old their car is before applying for the historic vehicle tax class.

Motorists must go through the process of taxing their vehicles every year, even if they don’t end up paying anything.

Any classic cars that drivers want to keep on the roads must also be insured every year.

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At a minimum, the law states that motorists must have third-party insurance that covers the use of that vehicle on the road.

The Government’s historic vehicle taxation document (INF34) lists a number of qualifying vehicles which are exempt from paying tax.

This includes private or light goods vehicles, motorcycles and tricycles, private HGVs, special vehicles, haulage vehicles and any special concessions.

Some of the notable concessions are agricultural machines, work trucks, gritting vehicles and even steam vehicles.

The historic tax class also cannot be applied if the vehicle is used in connection with a business for the gain of commercial interests.

Any drivers wanting to tax their cars with the historic vehicle tax class will need to visit a post office branch which deals with these matters.

Motorists looking to apply will need their V5C registration book, which shows that the car was built or registered before January 1, 1983.

They will also need an “appropriate test certificate”, such as an MOT document, as well as a filled-in V10 form which allows them to apply for vehicle tax.

If a driver is unsure of how old the car really is, they can consult their V5C log book, as well as any other documents which may have information on the manufacturing date.

In the event that they cannot find this, they can consult their classic car dealer or even the manufacturer. If they are still in doubt, they can contact the DVLA to confirm their exemption status.

Each year, a number of new classic cars enter the tax-exempt bracket, making them more attractive for owners and collectors.

Most recently, popular models like the Vauxhall Cavalier, Volkswagen Polo (second generation), Fiat Panda and Ashes to Ashes stalwart, the Audi Quattro.