{"id":5699,"date":"2024-08-15T09:00:26","date_gmt":"2024-08-15T08:00:26","guid":{"rendered":"https:\/\/www.exchangemycar.co.uk\/blog\/?p=5699"},"modified":"2026-04-06T11:30:51","modified_gmt":"2026-04-06T10:30:51","slug":"when-does-a-car-become-tax-exempt","status":"publish","type":"post","link":"https:\/\/exchangemycar.co.uk\/blog\/when-does-a-car-become-tax-exempt\/","title":{"rendered":"When Does a Car Become Tax Exempt? (Car Tax Guide)"},"content":{"rendered":"

Cars in the UK need to pay an annual Vehicle Exercise Duty (VED), more commonly known as road tax, in order to legally circulate on the public road. The value of the fee depends on the car\u2019s age, fuel type, tailpipe CO2 emissions, and engine capacity, with older or more polluting models typically being more heavily taxed. However, several cars can actually become tax exempt.<\/p>\n

If you drive a classic car or any of the special vehicles that meet the criteria, this could save you a lot of money in tax costs. This article outlines the criteria that make a car tax exempt in the UK, as well as the steps you need to take to apply for the road tax exemption.<\/p>\n

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Road Tax Exemption for Historic Vehicles<\/strong><\/h3>\n

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A few years ago, the UK Government implemented a 40-year rolling tax exemption for historic vehicles. Essentially, what that means is that you can register vehicles that are over 40 years old<\/strong> as tax-exempt. More specifically, for each financial year starting on April 1st<\/sup>, vehicles manufactured at least 40 years before January 1st<\/sup> of the same year are eligible for this.<\/p>\n

For example, for the 2025 financial year, starting on April 1st<\/sup>, 2025, you won\u2019t have to pay the VED if your car\u2019s manufacturing date is earlier than January 1st<\/sup>, 1985 (or if its first registration date is earlier than January 8th<\/sup>, 1985).<\/p>\n

Cars registered as historic enjoy a few extra benefits in addition to not having to pay road tax. For starters, they are also MOT-exempt<\/strong>, provided they haven\u2019t been extensively modified (things like new chassis or different engines from stock). They are also London ULEZ compliant<\/a>. That means if you want to use your 1960s Jaguar E-Type as your daily driver in the city centre \u2013 you can! We can\u2019t think of a much better way to \u201cstick it to the man\u201d \u2026<\/p>\n

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\"When<\/p>\n

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How To Apply for a Tax Exemption on Your Car?<\/h3>\n

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Just because your vehicle is over 40 years of age doesn\u2019t mean you can simply stop paying your VED. There\u2019s a fine of up to \u00a380 for driving a car without submitting your tax \u2013 even if you don\u2019t actually have to pay<\/em> anything.<\/p>\n

You will need to put your vehicle in the historic tax class with the DVLA<\/a> and apply for the exemption. This can be done at a<\/strong> post office<\/strong> that deals with vehicle tax. Here\u2019s all you need to bring:<\/p>\n

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