Automobiles together with Ford, Vauxhall, Austin ‘tax free’ from April 2026 after change

Officers warn drivers have to take motion to get cash off – as assist grows for marketing campaign for brand spanking new exemptions

1986 Ford Escort

1986 Ford Escort – they offered hundreds of thousands and are actually tax-free (Picture: Getty)

Automobiles which offered hundreds of thousands haven’t gone by means of a key threshold and don’t need to pay tax any extra from this month – however drivers have to take motion. It comes as a marketing campaign is rising to try older, dependable automobiles that are being increasinly scrapped as excessive tax charges because of barely extra highly effective engines, imply homeowners are being requested to pay nearly the worth of the automotive yearly.

From this month a raft of automobiles which have been constructed 40 years in the past will develop into ‘classics’ that means they don’t pay automotive tax any extra. Autos within the UK over 40 years previous are exempt from paying Automobile Excise Responsibility (VED), or “highway tax,” on a rolling foundation, offered they don’t seem to be used commercially. As of 1 April 2026, automobiles constructed earlier than 1 January 1986 are exempt. Homeowners should nonetheless tax their automobiles, even when the payment is £0.

We use your sign-up to offer content material in methods you have consented to and to enhance our understanding of you. This will embody adverts from us and third events based mostly on our understanding. You’ll be able to unsubscribe at any time. Learn our Privateness Coverage

A number of the vehicles which are actually tax free embody some which have been seen throughout the UK’s roads and actually offered hundreds of thousands. Each driveway had one or one other.

The highest vehicles offered in UK in 1986:

Ford Escort: The market chief.
Ford Sierra: Gaining reputation, incessantly second in gross sales.
Austin Metro: High British Leyland vendor.
Vauxhall Cavalier: Key competitor to the Sierra.
Ford Fiesta: Common supermini.
Vauxhall Astra: Sturdy competitor within the household automotive market.
Ford Orion: Saloon model of the Escort.
Austin Montego: Consultant of the Austin Rover vary.
Austin Maestro: Mid-range hatchback.
Ford Granada: Govt automotive alternative

With a view to make the automotive exempt, a driver should formally reclassify the automobile as “historic” with the DVLA. On 1 April annually, the exemption advances, permitting older automobiles to qualify.

The automobile have to be over 40 years previous, and no “substantial modifications”, similar to chassis, physique, or engine modifications, can have been made inside the final 30 years. ehicles over 40 years previous that haven’t been considerably modified are additionally exempt from MOT testing.

The exemption doesn’t apply to automobiles used for business functions similar to employed vehicles.

It comes as assist for a petition has nearly reached a key complete. On the parliament web site nearly 50,000 individuals have signed up for calls to alter the tax bands on vehicles that are greater than 20 years previous. That is half option to the 100,000 complete wanted to spark it being thought-about for a parliamentary debate – placing strain on the federal government for change.

It says: “Cut back Automobile Excise Responsibility by 50% for automobiles aged 20 to 39 years. Introduce a 50% VED discount for vehicles aged 20–39. Excessive taxes power purposeful automobiles to be scrapped, making a “disposable” tradition. Preserving present vehicles is greener than constructing new ones, because it preserves embedded carbon. This “Younger-Timer” bracket helps the round economic system and UK heritage.

“Manufacturing a brand new automotive creates large carbon debt. We should transfer from a “disposable” automotive tradition to a round economic system. Preserving a purposeful 20-year-old automotive on the highway is commonly greener than constructing a brand new one, because it preserves the embedded carbon already spent. Present VED charges power many well-maintained vehicles to be scrapped prematurely. We name for a 50% “Transition to Historic” tax low cost to encourage restore, assist the UK heritage business, and replicate the low mileage of contemporary classics.”

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

Researchers have decided that it’s significantly extra eco-friendly to keep up an older motor on the highway than for somebody to scrap their automobile and buy a newly-manufactured one. The Guardian famous that manufacturing a medium-sized new automobile could produce over 17 tonnes of CO2 – practically equal to a few years’ value of fuel and electrical energy utilization within the common UK family.

Mike Berners-Lee and Duncan Clark penned: “With this in thoughts, except you do very excessive mileage or have an actual gas-guzzler, it typically is sensible to maintain your previous automotive for so long as it’s dependable – and to take care of it rigorously to increase its life so long as attainable. When you make a automotive final to 200,000 miles slightly than 100,000, then the emissions for every mile the automotive does in its lifetime could drop by as a lot as 50%, because of getting extra distance out of the preliminary manufacturing emissions.”

New 2026-2027 automotive tax charges for automobiles registered between March 1, 2001, and April 1, 2017

As much as 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

Because the petition surpassed 10,000 signatories, the Treasury has issued a response. It acknowledged: “The Authorities has no plans to cut back Automobile Excise Responsibility liabilities for automobiles aged 20 to 39 years. The Authorities retains all taxes beneath evaluate and the Chancellor makes selections at fiscal occasions.

10 fashionable fashions hit hardest by VED ‘tax entice’

Mannequin Annual highway tax fee

Audi TT 1.8T
Chrysler PT Cruiser
Ford Galaxy 2.3
Ford Mondeo V6
Jaguar X-Kind 2.0-litre Auto
Land Rover Freelander 2 i6
Saab 900 Convertible
Subaru Forester 2.5 XT
Vauxhall Zafira VXR
Volkswagen Golf R32

“Income from motoring taxes helps guarantee we will proceed to fund the important public companies and infrastructure that folks 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 file degree of funding will allow the federal government to exceed its manifesto dedication to repair a further 1 million potholes per yr by the top of the Parliament.”

To learn the petition, join and examine the total Treasury response, click on right here.