How does the 40 year VED exemption roll?

See our report on the Budget 2015 released within 30 minutes of the Chancellor making his Budget 2015 Statement to the House of Commons on Wednesday 18th March 2015. More
































Posted: 150319

In the Budget 2015, tucked away on page 87 of the support document released by HM Treasury shortly after the Chancellor sat down after making his Statement in the House of Commons on 18th March 2015, was the announcement:
2.165 Vehicle Excise Duty classic vehicle exemption –
As announced at Budget 2014, from 1st April 2016 a vehicle manufactured before 1st January 1976 will be exempt from paying VED. (Finance Bill 2015)

See Para 2.165, page 87 of the Budget 2015 document.

This followed the welcome but brief announcement on page 76 of the Budget 2014 support document:
2.153 The Government will introduce a rolling 40 year VED exemption for classic vehicles from 1st April 2014. (Finance Bill 2014 and future Finance Bills).
See Para 2.153, page 76 of the Budget 2014 document.

That rolling 40 year VED exemption followed the earlier announcement in the support document issued by HM Treasury shortly after the Budget 2013 made in March 2013 that the Government would extend the cut off date from which classic vehicles are exempt from VED by one year.
2.148 VED: classic vehicle exemption – The Government will extend the cut off date from which classic vehicles are exempt from VED by one year. From 1st April 2014 a vehicle
manufactured before 1st January 1974 will be exempt from paying VED. (Finance Bill 2014)

See Para 2.148, page 84 of the Budget 2013 document.

So a rolling feature was very good news. But Keith Belcher wondered whether anyone knew with any certainty that this VED exemption will roll on as promised? His research is below together with Chris Hunt Cooke's view.
Situation clarified - 40 year exemption will have to be re-enacted every year in order to move it forward by a year
Chris Hunt Cooke says "I think Keith Belcher’s research (see below) has clarified the situation, instead of an automatic rolling exemption as we had previously with the 25 year VED exemption (removed by Gordon Brown back in 1997), the 40 year exemption will have to be re-enacted every year in order to move it forward by a year, if the Government of the day continues to support the measure. This makes it very easy to stop the rolling forward in any year if it is wished to do so, the Government simply has to refrain from including the clause in the Finance Act rather than taking positive action to amend the statute, as Gordon Brown had to in his first budget back in 1997. That is unfortunate but probably makes little practical difference, we shall just have to hope for the continuing support for the rolling VED exemption of future administrations."

See the Rolling 40 year VED Exemption research by Keith Belcher. More
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