The UK Classic Car Zero Tax Rate
For most cars on the roads of Great Britain and Northern Ireland, Vehicle Excise Duty, better known as road tax is due. This is the tax for which you receive a tax disc that is placed in the front windscreen and it is due every year, or six months.
Certain classic cars are exempt from paying this tax, and can obtain a tax disc without paying. This is a date based exemption, and the cut off date is 1st January 1973. If your car was manufactured before this date you are entitled to the tax disc without charge. This is due to the legislation presuming that you will do limited mileage in the vehicle. When the classic car legislation was initially implemented this was a rolling exemption for any vehicle over 25 years of age. However, this was changed by the government in 1997 and it was frozen at the 1973 date. This zero road tax class is known as the “Exemption from vehicle excise duty for historic vehicles”.
Not all vehicles built before 1st January 1973 count as historic vehicles, but anything that you might consider a classic car is included under the “private or light goods vehicles” category. Most of the exclusions are for vehicles still used for commercial purposes.
When you tax a classic car for the first time, you need to take or post the documents to your local DVLA office. The documents include the vehicle registration certificate (V5C), the MOT certificate, valid insurance documents and the application form from the DVLA. For future years you will receive a reminder through the post in the same way as you do for a paid renewal. You still have to prove that the car has an MOT and is insured in order to get the zero rate of vehicle excise duty. For many classic cars, you will be able to get special insurance that caters for the specific needs of vintage vehicles. This will be dependent on the needs of the owner, but typically might include limited mileage, agreed value, historic rally cover and is often discounted if you have membership of a car enthusiasts club.
Of course if you are not lucky enough to own your own classic car, then taxing it wont be a necessary step. There are other routes if you want to drive a classic car, perhaps for a special occasion such as a wedding, a prom or a birthday, in which case you can hire out a number of classic cars for self-drive hire. Available by the day or week this is a popular way to experience the beauty, excitement and ride of a vintage car, without any of the complications of ownership.
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