Author: Nik Berg
What makes a classic car? Well, if you ask the UK Government then the official answer is dictated by its 40-year rule. After four decades have passed since your car was first built then you can apply to the DVLA for Historic Vehicle status, which will exempt your car from the annual MOT test and from Road Tax, too. That can add up to hundreds of pounds in yearly savings. Just another excellent reason to drive a classic car.
What we will cover in this article:
- The history behind the 40-year rule
- Exemptions for cars older than 40 years old
- Road tax exemption explained
- How to apply for historic vehicle status
The history behind the 40-year rule
Although classic car insurers such as Hagerty will cover modern classics from just 15 years of age, the DVLA will only recognise your car as ‘historic’ once it reaches 40.
That’s because in the 2014 Budget the UK Government announced the introduction of a rolling 40-year exemption for Vehicle Excise Duty (Road Tax) on classic vehicles. “The VED exemption is intended to support classic vehicles, which the Government considers are an important part of the nation’s historical heritage,” declared HM Revenue & Customs. Then in May 2018 the rules were extended to include the MOT test. That means owners of classic cars which meet the 40-year rule are exempt from both. Win win!
Exemptions for cars older than 40 years old
The system works on a rolling basis, which means that every year more and more cars are added to the exemptions list as they reach 40 years of age. When the updated rules came out in 2018 it was estimated that around half a million classic cars were impacted, with the number considerably higher today.
By far the majority of 40-year-old classics will qualify once they come of age, but there are exceptions. If your car has had ‘substantial changes’ in the last 30 years such a new engine, transmission, chassis or body, then it may not qualify for MOT and Road Tax exemption. Check out the DVLA guidance for further information.
Road tax exemption explained
Exemption from VED or Road Tax represents a much bigger saving for most classic car owners than the cost of an MOT test and is definitely a big benefit of driving a classic. However, the rules for applying for tax exemption are slightly different and it all comes down to timing.
For your classic car to be exempt from the annual MOT it just needs to reach its 40th birthday. If you don’t know exactly when it was built, then you’ll use the date of first registration. To track down the history of your car you could contact a historian at a club and the Federation of British Historic Vehicle Clubs can almost certainly help you find an expert.
The date that your classic car becomes exempt from road tax is also determined by the registration date, but it’s not the specific day. Instead, the cut off is January 1 of the year after your car turns 40. If your car qualifies then it will be eligible for exemption from road tax from 1 April. You will still have to apply annually for road tax (VED) but you won’t have to pay a penny. Result!
How to apply for historic vehicle status
In order to qualify for both exemptions. you will need to wait until your classic car has reached the age of 40 years old (either from its build date, if you have it, or from the date of first registration). Then you’ll need to head to your nearest Post Office with your log book (V5C), your road tax reminder (if you have one) and evidence of a current MOT. Unfortunately, this has to be done in person, rather than online.
At the counter ask for the Declaration of exemption from MOT form (V112), and fill it out to state that your vehicle now conforms to Category R (A vehicle other than a public service vehicle registered or manufactured 40 years ago and which has not been substantially changed in the last 30 years).
The Post Office will then send your log book to the DVLA and your car will be recognised as being a Historic Vehicle. Remember, your car won’t necessarily be exempt from Road Tax immediately after you register the change with the DVLA, as VED is calculated from 1 January for the following April.
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