The UK Government has confirmed that vehicles over 40 years old will remain exempt from Vehicle Excise Duty (VED).
Announced as part of the 2025 Autumn Budget, Chancellor Rachel Reeves’ decision has been widely well-received. Currently, there are more than 1.9 million classic cars and motorcycles on UK roads, with over 350,000 qualifying for the VED exemption.
The UK’s classic vehicle sector is valued at over £7.3 billion, and supports more than 100,000 jobs. Typically, a car is considered ‘classic’ at 25 years old, meaning many models from the 1980s, 90s, and early 2000s now fall into that category.
As well as the VED exemption, Reeves confirmed that the MOT exemption for vehicles over 40 years old will remain in place, though this will be reviewed in the coming years. While some classic car owners welcome the flexibility, others still opt for annual tests to ensure roadworthiness.
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