Petition calling for lower VED rate for 20 to 30 year old cars

NEWS items on the Historic Vehicle status & VED exemption on the V8 Website
Link


Posted: 260218

An online petition has been launched calling for reduced car tax for cars from the nineties and naughties to save them from scrappage and make them affordable "classics" for younger enthusiasts. But there is another group who are keen to buy them - daily users driving in low emission zones who want to buy a low cost car to avoid the burden of paying daily LEZ charges in urban areas which can exceed £3,000pa.
So some owners as classic car enthusiasts might do modest annual milages but other daily users could clock up high annual mileages.

This petition highlights a growing movement to protect "modern classics" from being scrapped due to high taxation, arguing for a more nuanced approach that encourages the preservation of older, functional vehicles.


Historic vehicle tax exemption
You can apply to stop paying for vehicle tax from 1st April 2026 if your vehicle was built before 1st January 1985. You must tax your vehicle even if you do not have to pay.

What does "you must tax your vehicle even if you do not have to pay" mean? If the DVLA has accepted your application to change the tax class of your eligible vehicle to "Historic", and has amended your vehicle's V5C to "Historic", then with that change it means you have to renew your road tax annually at the NIL VED rate. The exemption is available on a rolling 40 year basis for vehicles built 40 years ago and more. "Built before 1st January 1985" effectively means built in 1984 up to and including 31st December 1984

GOV.UK webpage on historic vehicle tax exemption: Link


Reduce Vehicle Excise Duty by 50% for vehicles aged 20 to 39 years
The petition was opened on Friday 6th February 2026 with a Signature Deadline on
Thursday 6th August 2026. Petition link

Petition says:
"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.

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".

All-Party Parliamentary Group, Historic Vehicles
The Chair of the Group, David Simmonds MP, feels it is unlikely UK Government ministers will seriously consider this petition.

Federation for British Historic Vehicle Clubs
The FBHVC is reported as saying "the Federation aspires to persuade the UK Government to extend the present VED exemption for vehicles 40 years old and over to 30 years in line with the international definition of historic vehicles, however seeking a 20 plus reduced VED benefits has not been contemplated". It adds the official DVLA data show the sheer number of vehicles that would be included in a 20 plus reduction in the eligibility for a VED reduction, and with their continued use as everyday transport, the Federation would find it hard to challenge a Treasury view those vehicles are not "heritage or historic vehicles".

Petition response
So far just over 38,000 have signed up supporting the petition. At 100,000 signatures, the petition will be considered for debate in Parliament. Current signatures