UK Keeps 40-Year Tax Exemption For Classic Cars After Review
November 30, 2025
5:39 pm
UK Government retains historic Vehicle Excise Duty exemption, preserving relief for 350,000 classic vehicles and easing industry fears of new charges.
UK government will retain long-standing tax exemptions for classic cars, ending months of speculation that owners of historic vehicles could soon face new charges. The decision preserves a policy that allows cars and motorcycles more than 40 years old to avoid paying Vehicle Excise Duty (VED), a rule seen as essential to sustaining Britain’s multi-billion-pound classic car sector.
Concerns grew ahead of the upcoming Budget after Conservative MP Richard Holden warned that the exemption might be scrapped. Industry groups
