Cars including Ford, Vauxhall, Austin ‘tax free’ | Tech News

Cars which bought thousands and thousands haven’t gone by way of a key threshold and don’t should pay tax any more from this month – however drivers need to take motion. It comes as a marketing campaign is growing to take a take a look at older, dependable automobiles that are being increasinly scrapped as high tax charges resulting from barely more highly effective engines, imply house owners are being requested to pay virtually the worth of the car yearly.

From this month a raft of automobiles which have been constructed 40 years in the past will change into ‘classics’ which means they don’t pay car tax any more. Vehicles within the UK over 40 years outdated are exempt from paying Vehicle Excise Duty (VED), or “road tax,” on a rolling foundation, supplied they aren’t used commercially. As of 1 April 2026, automobiles constructed earlier than 1 January 1986 are exempt. Owners should nonetheless tax their automobiles, even when the payment is £0.

Some of the automobiles which are actually tax free embrace some which have been seen throughout the UK’s roads and actually bought thousands and thousands. Every driveway had one or one other.

The prime automobiles bought in UK in 1986:

• Ford Escort: The market chief.
• Ford Sierra: Gaining reputation, continuously 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 car market.
• Ford Orion: Saloon model of the Escort.
• Austin Montego: Representative of the Austin Rover vary.
• Austin Maestro: Mid-range hatchback.
• Ford Granada: Executive car selection

In order to make the car exempt, a driver should formally reclassify the vehicle as “historic” with the DVLA. On 1 April annually, the exemption advances, permitting older automobiles to qualify.

The vehicle should be over 40 years outdated, and no “substantial changes”, reminiscent of chassis, physique, or engine modifications, can have been made within the final 30 years. ehicles over 40 years outdated that haven’t been considerably modified are additionally exempt from MOT testing.

The exemption doesn’t apply to automobiles used for industrial functions reminiscent of employed automobiles.

It comes as assist for a petition has virtually reached a key complete. On the parliament web site virtually 50,000 people have signed up for calls to change the tax bands on automobiles that are more than 20 years outdated. This is half strategy to the 100,000 complete needed to spark it being thought of for a parliamentary debate – placing strain on the federal government for change.

It says: “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” tradition. Keeping current automobiles is greener than building new ones, because it preserves embedded carbon. This “Young-Timer” bracket helps the round economic system and UK heritage.

“Manufacturing a new car creates massive carbon debt. We must move from a “disposable” car tradition to a round economic system. Keeping a practical 20-year-old car on the street is commonly greener than building a new one, because it preserves the embedded carbon already spent. Current VED charges pressure many well-maintained automobiles to be scrapped prematurely. We call for a 50% “Transition to Historic” tax low cost to encourage restore, assist the UK heritage industry, and mirror the low mileage of trendy classics.”

But as a result of these automobiles are actually value little or no – usually beneath £1,500 – the annual tax invoice can symbolize 25-50% of the car’s complete worth and people are getting them scrapped. It signifies that automobiles which produce more than 225g of CO2 emissions per kilometre are hit by Vehicle Excise Duty (VED) – with these producing 226-255g/km £760 and over 255g/km £790. rising in April 2026.

Researchers have decided that it’s significantly more eco-friendly to take care of an older motor on the street than for somebody to scrap their vehicle and buy a newly-manufactured one. The Guardian famous that manufacturing a medium-sized new vehicle might produce over 17 tonnes of CO2 – practically equal to 3 years’ value of gasoline and electrical energy utilization within the average UK family.

Mike Berners-Lee and Duncan Clark penned: “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 car 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 surpassed 10,000 signatories, the Treasury has issued a response. It said: “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 popular models hit hardest by VED ‘tax trap’

Model Annual road tax rate

• 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 companies and infrastructure that people 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 degree of funding will allow the federal government to exceed its manifesto dedication to repair an extra 1 million potholes per yr by the top of the Parliament.”

To learn the petition, signal up and consider the total Treasury response, click on right here.