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Tax exemption for 'classics'
Lud
on 23 September 2006
My daughter's employer has an old BMW he is fond of. Naturally she doesn't know what model. It is nearly 25 years old and he thinks it will become tax-exempt at that time.
I understand however that this may not be the case. Sorry to be ignorant, but does anyone know what this situation really is? I think I remember that the 25-year rule was amended.
I understand however that this may not be the case. Sorry to be ignorant, but does anyone know what this situation really is? I think I remember that the 25-year rule was amended.
Comments
tr7v8 on 23 September 2006
Yup the dozy Labour clowns fixed the exemption which was originally intended as rolling. So it's only cars built in 1972 or before. This includes the odd car with a 73 registration date as the year of manufacture was 72.Labour had voted against it when it was originally implemented & then froze it once they came to power.
Dynamic Dave on 23 September 2006
tinyurl.com/g43ze (link to the DVLA)
Exemptions from paying vehicle tax
Old vehicles constructed before 1 January 1973 (historic vehicles):-
All vehicles except buses and lorries used commercially, that were constructed before 1 January 1973 may tax in the 'historic vehicle' tax class.
Lud on 23 September 2006
Thanks tr7, thought it was something like that. He won't be best pleased.
Lud on 23 September 2006
Thanks DD too
Cliff Pope on 23 September 2006
It's only £165 a year tax, so hardly significant in the general scheme of costs. It's a nice bonus if your car is pre 1972, but not a reason for rejecting one after that date.
tr7v8 on 23 September 2006
BUt it significantly distorts the market around that period. On things like TR6's it can make a fair difference on value. Also remember a lot of classics have biggish engines, if the do ramp road tax cost onto capacity some of these are going to get hit very hard in realation to the mileages they do. My 1980 TR7 is 3528cc & has done 3,500 miles in 2.5 years!
SlidingPillar on 23 September 2006
Car clubs etc have always looked for definitions of older vehicles for competition use, and "historic" as a tax class can sometimes be used. This, and the fact they can legally have white on black numberplates and a few other things is also a factor.Value for export can also make a difference in price, as some countries have a similar age limit to let the cars in. Otherwise they have to pass all sorts of testing, which as original, few would.
I'm lucky as my four wheeled Morgan is 1972, but I'm very glad before the tax thing came in, I'd got DVLC to allow me the original numberplate. Otherwise I'd have had a tax excempt car with a numberplate of the type ABC123T (long story of how it happend, but is related to being exported and re-imported).
I agree it's not fair and if you think about it, my car is now nearly 34 years old.
Micky on 23 September 2006
">so hardly significant in the general scheme of costs<"Oddly enough, it can be the biggest single fixed cost. Many elderly Brits can be insured for less than £150 fully comp with breakdown cover and eurocover included, depreciation is usually zero, servicing costs on a 5 000 mile per annum car are minimal (it's not one of those foreign machines old chap).
And then it breaks down :-(
martint123 on 23 September 2006
Oddly enough, it can be the biggest single fixed costIndeed - pre - whenever they reduce the costs for emissions - is what 165 quid for tax. Insurance for me in the MX5 is 120 quid, breakdown cover 35 quid. I Use the bikes more than the car, so fuel isn't all that much. So yes, VED is the biggest car expense for me. Which is why quotes from a recent political conference with green VED going to 3500 is a loser for them considering how many folk are in the same boat as me.
Micky on 23 September 2006
Unless it's an elderly MX5, there must be some depreciation. Have you considered selling the MX5 and buying a proper sports car ;-)
Hugo {P} on 24 September 2006
An old colleague of mine had a hustler kit car that IIRC was based originally on some of the bits from an E suffix Mini. DVLA allowed him to keep the E suffix plate on it.He has since changed bits to such an extent that the words "Grandfather" and "Axe" come to mind. The Registration is now the ONLY original item left, yet he is still tax exempt!
Also, I saw some time ago on E bay that someon was selling the chassis plate and docs from an old Series 2 land rover, claiming that you could change the details on the live Vehicle Registration Document (V5) to reflect the vehicle you have, attach the chassis plate and heypresto you have a 1998 Discovery that is tax exempt!
Steptoe on 24 September 2006
Some years ago I sold a scrap 72 Scimitar to a dealer/enthusiast, who paid my asking price and took V5.A year later after much hassling and threats to resell, he collected car.
I am convinced to this day that he only wanted the tax exemption to transfer onto one of his other runners.
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One mans junk is another mans treasure
blue_haddock on 24 September 2006
Also, I saw some time ago on E bay that someon
was selling the chassis plate and docs from an old Series
2 land rover, claiming that you could change the details on
the live Vehicle Registration Document (V5) to reflect the vehicle you
have, attach the chassis plate and heypresto you have a 1998
Discovery that is tax exempt!
I've seen that sort of thing being done quite a bit, although it would be difficult to say you've re-chassised an old series onto a disco!
I've also heard of it being done on mini's and beetles.
martint123 on 24 September 2006
Unless it's an elderly MX5, there must be some depreciation. Have you considered selling the MX5 and buying a proper sports carOne of the first, so depreciation has slowed - I paid 2k for it 5 years ago. So it owes me nothing.
If you were to include MGB' as 'proper sports cars' (I doubt it), my brother had "the oldest MGBGT on the road" and y word, was he glad to get rid of it earlier this year - just didn't have the time or resources to keep it on the road.
Martin
Micky on 24 September 2006
">I paid 2k for it 5 years ago<" Good price! I've thought about an MX5 as my 25k-per-year-work-car, I want to take advantage of global warming before the Gulf Stream switches off. But, an MX5? Still, perhaps I should cast aside my preconceptions and actually drive one ;-)MGBs are good fun, probably the most user-friendly of all the classic Brits. The hard top misses the point, but it can still be a reliable choice, well, vaguely reliable when compared to some of the alternatives. Needs care and attention though. Frighteningly, some people still use MGBs for day to day motoring ;-0
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