Owners of classic cars from the 1980s must take action to secure their tax-free status, as vehicles built before 1 January 1986 become exempt from Vehicle Excise Duty (VED) from April 2026. The change affects millions of once-ubiquitous models, including the Ford Escort, Austin Metro, and Vauxhall Cavalier.
How to Secure the Exemption
To benefit from the £0 tax rate, drivers must register their vehicle with the DVLA and officially reclassify it as "historic." The exemption applies on a rolling basis each April, provided the vehicle is over 40 years old and has not undergone substantial modifications to its chassis, bodywork, or engine in the past 30 years. Vehicles used for commercial purposes, such as hire cars, are not eligible.
Growing Campaign for Older Cars
Meanwhile, a petition nearing 50,000 signatures calls for a 50% reduction in VED for vehicles aged 20 to 39 years. Campaigners argue that high taxes force functional cars to be scrapped, creating a "disposable" culture that harms the environment. They highlight that manufacturing a new car generates over 17 tonnes of CO2, equivalent to three years of household energy use, making it greener to keep older vehicles on the road.
Popular Models Hit by Tax Trap
Many older cars, such as the Audi TT 1.8T, Chrysler PT Cruiser, and Ford Mondeo V6, face annual tax bills of up to £790, often exceeding 25% of the vehicle's value. This encourages scrappage despite the environmental cost.
Government Response
The Treasury has responded to the petition, stating: "The Government has no plans to reduce VED liabilities for vehicles aged 20 to 39 years. Revenue from motoring taxes funds vital public services and infrastructure, including £2 billion annually for pothole repairs." The petition now requires 100,000 signatures to trigger a parliamentary debate.
New 2026-2027 VED Rates
For vehicles registered between 2001 and 2017, rates range from £20 for emissions up to 110g/km to £790 for over 255g/km. Owners are urged to check their vehicle's status and register with the DVLA to avoid penalties.
