Update:
DVLA to refund owners forced to continue taxing their classic
car in Covid shutdown period
Update: 200911 |
The
Federation of British Historic Vehicle Clubs (FBHVC) has welcomed
news that DVLA has announced that owners of a classic car built
in 1979 and eligible for VED exemption from 1st April 2020 who
had to pay a road tax charge from April 2020, because their
VED exemption claim could not be processed, will be refunded
each full month of the VED they have paid. DVLA Swansea have
been working through a backlog of documentation relating to
VED exemption claims and the necessary change of VED status
on the V5C to "Historic" following the Covid constraints
on DVLA staff over the last 6 months or so. |
Wayne
Scott, FBHVC Communications Director, has siad "despite
the challenges all DVLA departments have had to face during
the Covid pandemnic this year, the decision seems a thoroughly
noce gesture on behalf of DVLA".
Apply
for a vehicle tax exemption webpage |
Important
clarification
The new MOT exemption arrangement is one of three entirely
separate matters concerning historic vehicles, which thankfully
will stay separate as none of them affect each other:
1. MOT exemption
This was previously available to vehicles built before a 1960
cut-off but from 20th May 2018 it has been available to vehicles
manufactured or first registered over 40 years ago and declared
to be a VHI. From then it will be available on a rolling 40
year basis.
2. VED (Road Tax) exemption
This exemption for vehicles with the "Historic"
road tax class is available on a rolling 40 calendar year
basis. This concession was introduced several years ago and
has not changed. The relevant date is the vehicle "built"
date. A vehicle is eligible for a NIL value Vehicle Excise
Duty (VED or more commonly referred to as road tax) whether
or not a car is declared a VHI. In the first year of eligibility
the concession is available from the 1st April. So if your
car was built in 1980 then VED exemption will be available
from 1st April 2021.
3. Re-registration of a vehicle that has undergone substantial
change
The requirement to report changes to DVLA that affect the
V5C and consider whether this is a radically altered vehicle.
This is where the DVLA eight point rule comes from and it
has no relevance to whether a vehicle is a VHI. This is an
existing requirement which is not altered in any way by either
MOT exemption or VED exemption.
Flowchart:
VED and MOT exemptions
This flowchart illustrates the procedure for claiming VED exemption
and alongside the procedure for declaring a vehicle as a VHI
on retaxing the vehicle. That is the only link between the separate
exemption procedures. More
Many thanks to Chris Hunt Cooke for preparing
the two articles explaining the eligibility, procedures and
timing for applications for the VED and MOT exemptions.
Posted: 190130
Updated: 190911
 |

VED
(Road Tax) exemption explained
A concise article
for owners of classic MGs which are 40 years old or more who
may be uncertain over matters relating to VED exemption eligibility
or the procedure and timing for applications for VED exemption.
More
What
is VED exemption in brief?
VED exemption for vehicles with the "Historic" road
tax class is available on a rolling 40 calendar year basis.
This concession was introduced in the Budget in March 2013 and
has continued by rolling on each year since then. The relevant
date for eligibility is the vehicle "built" date.
A vehicle is eligible for a NIL value Vehicle Excise Duty (VED
or more commonly referred to as road tax) whether or not a car
is declared a VHI.
But the free road tax does not come automatically, you
will need to apply for it. Unless you take action to apply for
"Historic"status for an eligible car and get that
tax class change to "Historic" recorded on the V5C,
an application to retax your car will not automatically result
in a free renewal or a "NIL value" VED as it
is known. So it's a two stage process: first obtain a tax class
change to "Historic" on the V5C and then apply to
retax you car at the "NIL" value VED rate.
Timing issues with VED exemption
In the first year of eligibility the concession is available
from the 1st April following the year end which is 40 years
from the year when the car was "built". So if your
car was built in 1979 then VED exemption will be available from
1st April 2020. An additional complication is if your car was
first registered after 31st December of the year the car was
built then you will also need to provide evidence of the build
date when making your tax class application.
How do you change the tax class?
To change the taxation class to "Historic" you will
need to obtain a DVLA road tax application form V10 and complete
the details ensuring you state the car is "Historic"
in the section for the tax class. You will also need your red
V5C (UK Registration Certificate) and in Section 7 "Changes
to Current Vehicle" you need to enter "Historic"
in the taxation class box. You will see in the footnote that
"the tax class shown in section 4 can only be changed when
taxing the vehicle. The tax class change application can be
made at many local Post Offices or at DVLA Swansea. Your application
will also need to include your current MOT certificate and certificate
of motor insurance.
DVLA
Form V10
You can download the forms from the the GOV.UK website or pick
them up at a local Post Office that can process road tax renewals.
Download
a form and guidance on how to fill in form V10 and make a VED
renewal application.
Form V10
Ensure you have a posting record of
your application
As your tax class change and NIL value roas tax application
will contain important documents - V5C, MOT and insurance certificates
and a Heritage certificate - we strongly advise using the Royal
Mail recorded delivery service, or even a registered post option,
to be certain you have evidence of your posting those documents
to DVLA. It will also be prudent to take good quality photocopies
of each document so you can retain them.
Flowchart illustrating the VED exemption
process
See our flowchart. More
Paper road tax discs ended in 2014.
|

MOT
exemption explained
A concise article
for owners of classic MGs which are 40 years old or more who
may be uncertain over matters relating to MOT exemption eligibility
or the procedure and timing for applications for MOT exemption.
More
What
is MOT exemption in brief?
The new regime in the UK for exemptions from the requirement
to take the MOT test came into force on 20th May 2018. This
exemption is available to any vehicle which qualifies as a Vehicle
of Historic Interest (VHI): essentially the vehicle was manufactured
or registered for the first time at least 40 years previously,
is of a type no longer in production, has been historically
preserved or maintained in its original state and has not undergone
substantial changes in the technical characteristics of its
main components in the last 30 years. The responsibility of
declaring a vehicle as MOT exempt will rest entirely with the
keeper of the vehicle as a self declaration. The DfT has issued
guidance
on "substantial change" which is essential reading.
Self declarations as an MOT exempt vehicle can only be made
when a car is retaxed. As many cars eligible for a road
tax class change to "Historic" on their V5C had an
application made at the earliest opportunity in April, it's
likely many keepers will have to wait almost a year before they
can make the MOT exempt vehicle declaration. One possible way
of overcoming that timing issue is to put the car on a SORN
for a short period and then retax the car.
A vehicle eligible for MOT exemption does not have to be
so declared and even if declared MOT exempt, the keeper does
not have to cease having the car MOT tested or inspected on
a voluntary basis. Many classic car enthusiasts feel continuing
to have their car examined or tested by an experienced MOT tester
is a wise thing to do. With their knowledge and experience the
MOT testers are able to spot areas of concern or more serious
roadworthiness issues which could be overlooked by a careful
enthusiast.
Whether the car is tested or not, keepers of VHIs exempt
from periodic MOT testing continue to be responsible for the
roadworthiness of their car both as a legal requirement
but also as a condition of their motor insurance policy. Owners
of vehicles that have been self-declared a VHI and are thereby
MOT exempt can continue to have their vehicle tested with an
annual MOT test or alternatively a similar safety test carried
out by an MOT tester or servicing specialist.
Flowchart: substantial change, VHI
declaration and MOT exemption process
See our flowchart. More
NEWS: VED exempt classics have been
pulled over by police for having no MOT
The Federation of British Historic Vehicle Clubs (FBHVC) has
issued advice after it emerged that some police are stopping
some owners of classic cars more than 40 years old for appearing
not to have a valid MOT. As DVLA keep no record that a vehicle
has been declared exempt, police cannot confirm that is the
case when they see a vehicle on the road. FBHVC were informed
that police were told to assume a car was exempt unless there
was evidence otherwise, but there have been press reports to
the contrary, and FBHVC have sought assurances from the National
Police Chiefs Council. A wise precaution will be to keep
the Form V112, stamped at the Post Office, or a screen grab
if submitted online, and a copy letter from DfT in the vehicle
in case you are stopped by police officers unaware of the VED
exemption changes for classics more than 40 years old. |