21 June 2007

We received a petition asking:

"We the undersigned petition the Prime Minister to change the tax exemption laws for historic motor cars."

Details of Petition:

"Currently cars have to have been constructed before a set date - the 1st January 1973 to be eligible for historic car tax exemption. We the undersigned would like the date to be move as it has been fixed for a number of years. A number of cars which were built in British factories are becoming few and far between and would like the Government to help preserve these cars by offering and extension on the current exemption date."

Government's responseThe Government is committed to using Vehicle Excise Duty as a means of bringing environmental factors into consideration when people choose to take ownership of a car. Vehicle Excise Duty also helps to support the Government's wider policy objectives by providing a valuable source of revenue from which important public services may be funded.

The Government recognises that many historic car owners would have been disappointed when the 1998 Budget decision was made to freeze the rolling 25 year exemption at 1973. However, the Government continues to judge that in the light of its environmental focus for Vehicle Excise Duty it would be inappropriate to extend the exemption at this point in time.

It should be noted that the current exemption remains in force, currently benefiting some 307,407 vehicles, many of which will be maintained in careful preservation by their owners. The exemption applies equally to all historic cars built before January 1973 irrespective of their country of manufacture.

Some other types of historic vehicle are also exempt from payment of Vehicle Excise Duty. This Government decided to make all steam powered vehicles exempt from April 2001, benefiting vehicles like preserved steam powered road rollers and traction engines. Historic lorries built before 1973 are also exempt, provided that they are not used commercially.

The Government believes that it has got the balance right in the current exemptions it offers. In considering the case for further exemptions or changes to existing ones the Government has to consider the stability of its tax measures, the consistency of its environmental signal, and the costs of delivery - these would include initial implementation costs and ongoing administrative costs.

Thats a polite way of saying NO!

Dubious reason to say NO too. The whole point of classic cars is you
don't use them very much, so how can environmental reasons come
into the argument? It's dubious to say the SD1 is any worse for the
environment than an equivalent modern car - the MPG is pretty
similar as modern cars are fat and lardy and have power-sucking
gizmos.

Whoever wrote the response has no concept of what a Classic Car is,
and probably drives to work in central London in a BMW X5.

No doubt, its all down to money though, say theres probably half a million cars out there that would loose revenue on if they brough back in the 25 year ban with a average of £145 per car (£180 or £110)thats £72,500,000 a year in lost revenue! You can see why they wont change it!

Stick it all on petrol I say then you pay for what you use!

They've ALREADY got lots stuck on petrol, and oil companies will be reluctant to be further tax collectors for the government, they'll just increase the cost even more.....

You know we have some of the cheapest petrol in Europe......

......till the REVENUE is added that is.

Road tax (on current non-exempt vehicles) I think should be assessed on the value of the car, the use of the car, historical significance, and the owners capability of paying. Similar to the insurance system, one would "apply" for car tax, and the DOT responds with a quote. I know this is a lot to ask, and would be a nightmare to implement and manage.

Also surely now with this aggressive campaign to get unlicensed vehicles off the road, crushed etc with these instant recognition systems used by the police and other agencies, that must equate to less unlicensed vehicles on the road hence the old arguement "You're paying for people who won't pay..." must now carry less weight, will our tax therefore be reduced???

I sincerely doubt it.

"environmental factors"

actually ther is virtually no evidence that C02 causes enviroment damage,hence Global warming THEORY!! (not Global warming LAW)

There is evidence to Polar weakening (how do you TAX that??)

It's just another way to tax governmental shortfalls

RESEARCH PEOPLE

money money money thats all they want, same with speed camera's just a way of creating revenue, they ban smoking in public places but don't ban ciggies imagine the tax they would loose.
If it doesn't benefit the government it won't happen.