Update on petition to extend the VED exemption to a rolling 30 years

Update
Fight goes on for the exemption

With signatures supporting the petition at 13,685, up by only 174 in the last week or only 1.3%, it will need a huge increase in new support each week to reach the 100,000 signatures needed by mid October 2021 to get the matter debated in the House of Commons. Although there is clearly a long way to go to get more than 86,000 additional supporters, reports say the petitioner has vowed to fight on. Updated: 210707

With the Chancellor looking to find ways of covering the huge debt run up from the UK Government's Covid support packages, giving away around £13m a year as a road tax exemption extension is likely to be rejected. DVLA stats indicate more than 82,000 modern classics would become eligible with a change to a rolling 30 year exemption.

Comment
Whilst classic car enthusiasts with cars from the early 1980s and early 1990s (many "hot hatchbacks") would welcome the 10 year extension (from a 40 years to 30 years) of the rolling VED exemption, with the present difficulties the Chancellor of the Exchequer faces in dealing with the huge debt built up to provide various packages of support during the Covid pandemic, giving away a greater road tax exemption concession is the last thing he would want to consider!
Posted: 210630

See our earlier NEWS item. More

Petition
Reduce the Tax exemption age for classic cars to 30 years

I would like the Government to reduce the tax exemption age for classic cars, from 40 years to 30 years. I would like the Government to do this as it will help young motoring enthusiasts afford classic cars.

13,511 signatures

Created by Stephen Hearse-Morgan
Deadline 13 October 2021 All petitions run for 6 months

Government responded
This response was given on 21st June 2021

There are no current plans to reduce the tax exemption age for classic cars from 40 to 30 years. The Government has set 40 years as being a fair cut-off date to distinguish classic cars from old cars.

At 100,000 signatures, this petition will be considered for debate in Parliament.


See the petition on the GOV.UK website. petition.parliament.uk/petitions/578294
HM Treasury has rejected a growing petition calling for pre-1991 modern classics to be exempted from road tax
Although the petition attracted more than 13,000 signatures, HM Treasury turned down the proposal on 21st June 2021 and in a statement said "the UK Government set 40 years as being a fair cut-off date that distinguishes classic cars from old cars. There are no current plans to reduce the the tax exemption age for classic cars from 40 years to 30 years, but as with all taxes VED is kept under review".

Motoring correspondent Quentin Willson disagreed with HM Treasury's decision saying the loss in VED receipts by bringing in a rolling 30 year exemption would be largely offset by the economic activity around the new classic cars. He added that attracting younger enthusiasts to enjoy the "Historic" classic car status of more recent models would bring them younger owners into the hobby which would change the classic car demographic considerably.

Car SOS presenter and CCW contributor, Fuzz Townsend, believes maintaining the rolling 40 year VED exemption will help protect classic cars in the longer run. He worries that if we had a change to rolling 30 year exemption the Government could find ways of to get the money back in other ways and they might roll back some of the freedoms and concessions classic car owners already have. A possibility might be the Government might issue a directive to local council to charge classic car owners to take their cars into towns and cities.

The organiser of the petition, a 22 year old classic car enthusiast Stephen Hearse-Morgan, says "the Government haven't even looked at it properly but I know in the current climate with Covid they have been busy. I am glad the petition is still going and if it gets 200,000 signatures by October the Government will have to look at it."

Currently the petition has attracted only 13,511 signatures
by Wednesday 30th June 2021.

Sir Greg Knight MP (chairman of the all-party Parliamentary Historic Vehicles Group), urged campaigners to reconsider as "any attempt to persuade the Government to change the current VED exemption for Historic vehicles needs to be approached with caution whilst we are still recovering from the Covid pandemic". He adds "the Chancellor of the Exchequer is already facing a Budget shortfall as a result of the heavy costs of the support provided as a result of Covid so asking him now to forgo more revenue form VED receipts is not something that is likely to be welcomed in Whitehall". That's code for don't push your luck!
Posted: 210630