Classic Car Owners Demand 50% Tax Cut from Labour Government
Mark Roper, Managing Director of Hagerty UK, has issued a stark warning to the Labour Party government regarding vehicle excise duty rates for older vehicles. Owners of classic cars are facing what they describe as an "unfair" tax raid from HMRC, prompting calls for significant reform.
Unfair Treatment of Modern Classics
Under current regulations, vehicles over 40 years old are completely exempt from Vehicle Excise Duty. However, Hagerty UK argues that cars aged between 20 and 40 years—often referred to as "modern classics"—are being unfairly overlooked in the tax system.
"We understand it takes money to keep the roads in good condition," Roper stated. "And we also understand the Government is motivated to get people into lower-emitting vehicles—we're absolutely on board with all of that."
"But it feels unfair to us that these cars are being treated the same as modern everyday cars that create high mileage on the road," he emphasized.
The Environmental and Economic Argument
Roper presented a compelling case for why these vehicles deserve different tax treatment. "These are cars that have already had their carbon journey," he explained. "They've been recycled through different ownerships, and they mean people don't have to go out and buy a new car."
He highlighted the typical usage patterns of these vehicles: "They're not used for the school commute or the trip to work. They're used for enjoyment—a drive into the countryside or to the pub on a Sunday."
"Older cars tend to do exactly that—they're driven less frequently," Roper continued. "If the purpose of VED is road upkeep and reducing emissions, then driving less achieves both of those objectives."
Proposed 50% Tax Reduction
Hagerty UK has formally suggested a 50 percent reduction in Vehicle Excise Duty for cars aged between 20 and 39 years. This proposal aims to create a more graduated tax system that better reflects how these vehicles are actually used.
"They've been around a long time, their carbon has been amortized over decades, and they're driven infrequently," Roper said of classic cars. "A reduction in vehicle excise duty is a fair way to reflect that reality."
The managing director expressed confidence that classic cars will remain on British roads regardless of tax policies. "I don't think we'll be seeing traditional and classic cars coming off our roads anytime soon," he noted. "We insure cars from the early 1900s right through to modern classics."
This call for tax reform comes as the Labour government continues to develop its transportation and environmental policies, balancing road maintenance needs with emissions reduction goals while considering the unique circumstances of classic car enthusiasts across the country.
