Many classic car owners are set to become exempt from paying Vehicle Excise Duty (VED) ahead of planned increases from the spring.
Historic vehicles over 40 years old do not need to pay VED fees meaning motorists who own a car built in 1984 could save hundreds of pounds.
The historic vehicle tax exemption is on a rolling 40-year basis meaning slightly newer cars are added to the list every year.
The Federation of British Historic Vehicle Clubs (FBHVC) outlined what motorists must check if they want to make savings.
They explained: “A vehicle which has attained 40 years age, whilst being test exempt, will need to continue to pay vehicle excise duty in the ‘private light goods’ or other relevant tax class until April of the following year.
“You can tax your vehicle in the ‘historic vehicle’ tax class from April 1 if your vehicle is recorded on the V5C registration certificate (log book) as “first registered” more than 40 years ago (i.e. 1982) and is one of the qualifying vehicles listed in the DVLA leaflet INF34.”
They added: “Currently, a vehicle “first registered” on/prior to January 7, 1983, will be classed by the DVLA as having been built in 1982, therefore it is tax-exempt from April 1, 2023.
“If your vehicle was ‘first registered’ after this date, up to 31 December 1983, you will need to wait until April 1, 2024.
“Younger vehicles become eligible in the April after the year in which they become 40 years old. For example, a vehicle “first registered” in February 1983 will be eligible to tax as a historic vehicle from April 1, 2024.”
Those with keys to historic models will dodge the higher tariffs with VED rates set to rise from April 1.
Charges for cars and vans with engines above 1549cc and registered before March 1, 2001, currently stand at £325.
This will rise by £20 in line with Retail Price Index (RPI) inflation with new fees set at £345.
Vehicles with engines below the 1549cc threshold will also pay more with rates increased from £200 to £210.
However, GOV.UK warns motorists must not forget to apply for car tax every year even if they know they will be exempt.
They commented: “DVLA will send you a vehicle tax reminder letter before your tax is due to expire. You’ll need to tax your vehicle, but will not need to pay.
“It’s illegal to drive your vehicle if you have not taxed it. You can be fined £80 if you do not tax your vehicle on time.”
