Car tax changes have been slapped down by the Government after drivers called for new laws to cut tax for classic vehicles aged between 20 and 40 years old.
A car does not become exempt from paying Vehicle Excise Duty (VED) until it is at least 40 years old, meaning that drivers need to pay tax unless they declare their vehicle off road (SORN).
The petition, set up by Claire Knight, called for vehicles older than 20 years of age to see a reduction in taxes so many “well-loved, modern classics” can still be seen on UK roads.
She warned that without a reduction in tax, these vehicles could disappear from British roads entirely.
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Classic cars are exempt from paying car tax when they are older than 40 years of age
PAKnight wrote: “As the owner of a 20-year-old modern classic, which is seldom driven more than 1,000 miles a year, I have just had my vehicle tax reminder though and even if I were to SORN the vehicle for six months of the year, it would still cost me £180 for six months.
“I like to take advantage of the occasional sunny day, year round, so I must pay £320 for this privilege. And there are owners of other models of the same car paying nearly £400 a year.”
The petition gained mass support from the public reaching over 10,000 signatures which prompted the Government to respond.
A spokesperson for HM Treasury explained that the Government has no plans to reduce the tax exemption age for classic cars from 40 to 20 years but considers that classic vehicles are an important part of the country’s historical and cultural heritage.
The spokesperson added: “The petition also referred to the costs of annual VED for a vehicle that is infrequently used. The current VED system is a tax on vehicle ownership rather than mileage, with rates based on factors including the vehicle type, engine size, date of first registration and carbon dioxide emissions.
“However, motorists additionally pay fuel duty on the petrol or diesel which they purchase, so those who complete significant mileage in cars that run on petrol or diesel will generally pay more in fuel duty than those who drive fewer miles.”
HM Treasury added that while there are no current plans to reduce the tax exemption age for classic cars it keeps all taxes under review, and welcomes representations from the public on improvements to the tax system.
It acknowledged that the cost of living crisis has impacted all Britons, especially with rising motoring prices for individual households and businesses.
Revenue from motoring taxes helps ensure funding to public services and infrastructure that people and families across the UK, namely repairing potholes and maintaining roads.
The petition will run until July 22 and if it reaches 100,000 signatures, it will be debated in the House of Commons.
In response to the petition, the spokesperson highlighted how the Government had introduced other measures to support drivers including a cut to fuel duty.
At the Spring Budget, the Government announced an extension of the fuel duty freeze for an additional 12 months by extending the temporary 5p per litre cut and cancelling the planned inflation increase for the year.
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The petition has received almost 11,000 signatures
PARLIAMENT PETITIONS
It estimated that drivers would save around £50 across the year, and a total of £250 since the 5p cut was first introduced in 2022.
