Owners should register with the DVLA to safe their £0 highway tax standing – it comes as marketing campaign gathers tempo
1986 Austin Montego – they offered hundreds of thousands and are actually tax-free(Image: Getty Images)
Vehicles which offered of their hundreds of thousands have now crossed a big milestone and are now not required to pay tax from this month – however motorists should take action. This comes as campaigners are more and more highlighting how older, reliable cars are being scrapped at alarming charges, with house owners dealing with annual tax payments practically equal to the automobile’s worth as a consequence of barely extra highly effective engines.
From this month, a wave of motors manufactured 4 a long time in the past will obtain ‘traditional’ standing, exempting them from automobile tax.
In the UK, automobiles over 40 years previous are exempt from paying Vehicle Excise Duty (VED), generally often known as “road tax,” on a rolling foundation, offered they are not used for industrial functions.
As of 1 April 2026, motors constructed earlier than 1 January 1986 qualify for exemption. Owners should nonetheless register their automobiles for tax, despite the fact that the cost is £0.
Among the newly tax-free automobiles are fashions that had been as soon as ubiquitous on Britain’s roads, with hundreds of thousands offered. They had been a standard sight on just about each road.
The prime cars offered in UK in 1986:
- Ford Escort: The market chief.
- Ford Sierra: Gaining recognition, often second in gross sales.
- Austin Metro: Top British Leyland vendor.
- Vauxhall Cavalier: Key competitor to the Sierra.
- Ford Fiesta: Popular supermini.
- Vauxhall Astra: Strong competitor within the household automobile market.
- Ford Orion: Saloon model of the Escort.
- Austin Montego: Representative of the Austin Rover vary.
- Austin Maestro: Mid-range hatchback.
- Ford Granada: Executive automobile alternative
To safe the exemption, drivers should formally reclassify their automobile as “historic” with the DVLA. Each yr on 1 April, the exemption rolls ahead, bringing extra older automobiles into eligibility.
The motor have to be over 40 years previous, and no “substantial changes” – together with modifications to the chassis, bodywork, or engine – can have been made previously 30 years. Vehicles over 40 years previous that have not undergone substantial alterations are additionally exempt from MOT testing. The exemption does not prolong to automobiles utilised for industrial actions, together with rent cars.
Meanwhile, momentum is constructing behind a petition that is nearing a vital milestone. Close to 50,000 folks have backed the marketing campaign on the parliament web site, calling for revised tax bands on automobiles over 20 years previous. This represents half the 100,000 signatures required to set off consideration for a parliamentary debate – probably heaping stress on the federal government to behave.
The petition states: “Reduce Vehicle Excise Duty by 50% for vehicles aged 20 to 39 years. Introduce a 50% VED reduction for cars aged 20-39. High taxes force functional vehicles to be scrapped, creating a “disposable” culture. Keeping existing cars is greener than building new ones, as it preserves embedded carbon. This “Young-Timer” bracket supports the circular economy and UK heritage.”
It continues: “Manufacturing a new car creates massive carbon debt. We must move from a “disposable” car culture to a circular economy. Keeping a functional 20-year-old car on the road is often greener than building a new one, as it preserves the embedded carbon already spent. Current VED rates force many well-maintained cars to be scrapped prematurely. We call for a 50% “Transition to Historic” tax discount to encourage repair, support the UK heritage industry, and reflect the low mileage of modern classics.”
But with these automobiles now price little or no – often beneath £1,500 – the yearly tax invoice can account for 25-50% of the automobile’s complete worth, prompting house owners to have them scrapped. This means motors producing greater than 225g of CO2 emissions per kilometre face Vehicle Excise Duty (VED) expenses – with these emitting 226-255g/km paying £760 and these over 255g/km paying £790, set to extend in April 2026.
Experts have concluded that it’s miles extra environmentally sound to maintain an older automobile operating than to scrap it and purchase a newly-manufactured substitute. The Guardian reported that producing a medium-sized new automobile can generate over 17 tonnes of CO2 – roughly equal to a few years of gasoline and electrical energy consumption within the typical UK house.
Mike Berners-Lee and Duncan Clark wrote: “With this in mind, unless you do very high mileage or have a real gas-guzzler, it generally makes sense to keep your old car for as long as it is reliable – and to look after it carefully to extend its life as long as possible. If you make a car last to 200,000 miles rather than 100,000, then the emissions for each mile the car does in its lifetime may drop by as much as 50%, as a result of getting more distance out of the initial manufacturing emissions.”
New 2026-2027 automobile tax charges for automobiles registered between March 1, 2001, and April 1, 2017
- Up to 100g/km – £20
- Between 101 and 110g/km – £20
- Between 111 and 120g/km – £35
- Between 121 and 130g/km – £170
- Between 131 and 140g/km – £200
- Between 141 and 150g/km – £225
- Between 151 and 165g/km – £275
- Between 166 and 175g/km – £325
- Between 176 and 185g/km – £360
- Between 186 and 200g/km – £410
- Between 201 and 225g/km – £445
- Between 226 and 255g/km – £760
- Over 255g/km – £790
As the petition exceeded 10,000 signatures, the Treasury issued a response. It learn: “The Government has no plans to reduce Vehicle Excise Duty liabilities for vehicles aged 20 to 39 years. The Government keeps all taxes under review and the Chancellor makes decisions at fiscal events.
10 widespread fashions hit hardest by VED ‘tax trap’
Model Annual highway tax fee
- Audi TT 1.8T
- Chrysler PT Cruiser
- Ford Galaxy 2.3
- Ford Mondeo V6
- Jaguar X-Type 2.0-litre Auto
- Land Rover Freelander 2 i6
- Saab 900 Convertible
- Subaru Forester 2.5 XT
- Vauxhall Zafira VXR
- Volkswagen Golf R32
“Revenue from motoring taxes helps guarantee we will proceed to fund the very important public services and infrastructure that individuals and households throughout the UK count on. For instance, by 2029/30, the federal government will commit over £2 billion yearly for native authorities to restore, renew and repair potholes on their roads – doubling funding since coming into workplace. This report stage of funding will allow the federal government to exceed its manifesto dedication to repair a further 1 million potholes per yr by the tip of the Parliament.”
To learn the petition, enroll and view the complete Treasury response, click here.
