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    UK Classic Cars Escape Tax Clampdown in 2025 Budget, Raising Historic Cheers

    2 weeks ago

    Classic car enthusiasts in the UK can breathe easy following the 2025 autumn budget announcement that the rolling 40-year Vehicle Excise Duty (VED) exemption will continue. This exemption, which means vehicles over 40 years old pay no road tax, has been a cherished relief for the more than 350,000 owners of classic and historic cars. Despite swirling rumors that the government might scrap the exemption to raise additional funds, Chancellor Rachel Reeves confirmed that it remains firmly in place. Introduced in 2014 and updated yearly to include newer models as the years roll on, the exemption protects cars registered before 1 April 1985 for the current year, allowing famous classics like early BMW M5s, Porsche 944 Turbos, and even Ford Scorpios to dodge annual road tax bills. Beyond tax relief, cars over 40 years old continue to be exempt from annual MOT testing a boon that recognizes the careful upkeep and limited road use these vehicles typically enjoy. Industry voices, including Mark Roper, Managing Director of Hagerty UK, hailed the decision as a crucial nod to an industry and passion that contributes billions in taxes annually while preserving Britain’s automotive heritage. The historic vehicle sector views the exemption as fair given classic cars tend to run sparingly on cleaner modern fuels, contrary to perceptions of them as polluters. While the budget brings other motoring tax changes like pay-per-mile charges for EVs, classic car drivers remain shielded at least for now. This reaffirmation offers stability and reassurance to enthusiasts who keep Britain’s motoring soul alive on the roads. 
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