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 at all:
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 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 1979 then VED exemption
will be available from 1st April 2020.
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
Posted:
190204
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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. More
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 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. |
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. More
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 too. 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.
MOT
exemption explained A concise two page 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
Flowchart:
substantial change, VHI declaration and MOT exemption process See
our flowchart. More
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