Owners of classic cars and older vehicles may be able to sidestep the new 2024 car tax changes due to an exemption clause. Vehicle Excise Duty (VED) rates are set to increase for nearly all petrol and diesel vehicles from April 2024 as costs rise in line with inflation.
However, those who own cars that are over 40 years old could potentially cease paying the annual fee entirely, thanks to the DVLA's historic tax class. This could result in numerous owners saving hundreds of pounds on their yearly motoring bill in just a matter of minutes.
Khari Findlay, a Sales Executive at used car dealership Big Motoring World, stated that motorists could even bring their annual road tax bill down to £0 if their vehicle meets the criteria, reports the Express.
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He explained: "Historic cars or vintage cars, so a car older than 40 years old will also be exempt from tax too. So if you like a Triumph Spitfire for example, you'll be exempt there which is brilliant."
The historic tax exemption operates on a rolling 40-year basis and changes annually. This means that motorists who own a vehicle built before January 1, 1983 would have been eligible to stop paying tax from April 1, 2023.
Drivers unsure of when their vehicle was built can also apply for an exemption. In these cases, a model must have been registered prior to January 8, 1983.
The rules also stipulate that classic cars will only be exempt if they are not being used for hire or reward, such as operating as a taxi for paying customers. Classic car enthusiasts can enjoy a tax exemption on their vintage models, provided they are not used for commercial purposes.
However, experts have cautioned that these vehicles must always be registered with the authorities. This means owners cannot simply cease paying the DVLA when their vehicle hits the 40-year mark.
Darren Miller, Marketing Director at Big Motoring World, advises: "It's important to remember that qualifying for an exemption is not enough, as you will still need to make an official claim before you can reduce your tax bill. Just because your vehicle is exempt from road tax, you shouldn't forget to register it with the DVLA if you will be using it on a public road or file a Statutory Off Road Notification when your vehicle is 'off-road' for a certain period."
To find out whether you're eligible for car tax exemption, you can visit the gov.uk website.
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