BUD­GET 2016: GREAT NEWS FOR CLAS­SICS!

Rolling VED ex­emp­tion con­firmed at 40 years, but the FBHVC wants the bar set lower to 30

Classic Car Weekly (UK) - - Front Page - tinyurl.com/ccw-bud­get

Chan­cel­lor of the Ex­che­quer, Ge­orge Os­borne has con­firmed that the Govern­ment will be mak­ing the 40-year VED ex­emp­tion for clas­sic cars per­ma­nent from April 2017. Since the ex­emp­tion date was changed in March 2014, it has been re­newed on an an­nual ba­sis dur­ing the Bud­get, but un­til now was not con­firmed as a per­ma­nent mea­sure. It ef­fec­tively an­chors the of­fi­cial age of his­toric, there­fore tax-free, sta­tus to cars over 40 years old. But this move goes against the Fed­er­a­tion of Bri­tish His­toric Ve­hi­cle Clubs, which says it wants the rolling tax break ex­tended to ve­hi­cles over 30 years old.

The Govern­ment has con­firmed plans to ex­empt clas­sic cars over 40 years old from road tax per­ma­nently.

Chan­cel­lor of the Ex­che­quer Ge­orge Os­borne’s Bud­get doc­u­ment, re­leased on 16 March, an­nounced that the Govern­ment will leg­is­late to in­tro­duce a rolling VED ex­emp­tion for clas­sic ve­hi­cles from 1 April 2017. It states: ‘[From that date]... each year ve­hi­cles con­structed more than 40 years be­fore 1 Jan­uary of that year will au­to­mat­i­cally be ex­empt from pay­ing ve­hi­cle ex­cise duty.’

The Fed­er­a­tion of Bri­tish His­toric Ve­hi­cle Clubs alerted fol­low­ers of its so­cial me­dia streams to the tax­a­tion news im­me­di­ately. It wel­comed the VED an­nounce­ment, but said it wanted it to ap­ply to cars over 30. Ge­off Lan­caster, FBHVC com­mu­ni­ca­tions di­rec­tor says: ‘We would have liked the Chan­cel­lor to recog­nise that the in­ter­na­tion­ally ac­cepted date for qual­i­fi­ca­tion as an his­toric ve­hi­cle is 30 years, not 40 years.

‘We have done the maths and con­cluded that the im­pact on the trea­sury of such a con­ces­sion is fis­cally in­signif­i­cant. For our mem­bers, it would have the ef­fect of en­cour­ag­ing the preser­va­tion of the later (less ex­pen­sive) cars and it is th­ese that are most ac­ces­si­ble to the younger en­thu­si­asts who tend to have less to spend and who we are keen to en­cour­age into the move­ment.’ Chris Baker from Not­ting­ham took to

CCW’s Face­book page to ask: ‘I have a 1996 Jaguar XJ-S and it’s £230 a year to tax. It does 1000 miles a year and never goes out in the rain, and it doesn’t get used in peak times. My dad has a (mod­ern) Audi A4 TDI (diesel). It does 15,000 miles a year and he pays £30 a year road tax. How is this fair?’

Away from VED, fuel duty has been frozen for the sixth year in a row. It has been held at 57.95p per litre since March 2011. Brian Mad­der­son. chair­man of the Petrol Re­tail­ers As­so­ci­a­tion says: ‘The an­nounce­ment will save house­holds an av­er­age of £75 a year.’

His­toric ve­hi­cle tax­a­tion ap­plies to when the car was built, rather than sold. A car reg­is­tered af­ter the cut-off date will still be granted a tax break, as long it’s pos­si­ble to prove its date of build.

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