Mike Brewer warns thousands of drivers that car tax ‘loophole’ which sees them save £1,000s could VANISH in months
MIKE Brewer has warned thousands of drivers that a car tax “loophole” could vanish in just months.
The Wheeler Dealers TV host is concerned the classic car exemption, which he campaigned for, might be scrapped.
Vehicles which are more than 40 years old can be added to the historic vehicle tax class, making them exempt from vehicle tax or ULEZ charges.
All vehicles made before January 1, 1973, are also exempt.
But the car expert believes the “loophole” could be considered “ridiculous” by politicians and axed.
“Give it a couple of years and they will close that loophole as well,” he told Express.co.uk.
“I fought for rolling tax exemption on classic cars. Elvis (Marc Priestley) is now fortunate enough to stand up in front of a group of MPs and give them some of our passions.
What is vehicle excise duty?
Vehicle Excise Duty, or VED, is also referred to as vehicle tax, car tax or road tax.
Most vehicles used – or parked – on public roads in the UK will be subject to VED.
It’s collected and enforced by the DVLA, and if you aren’t using your vehicle, you must make a SORN, or Statutory Off Road Notification, to take it off the road.
You can pay VED in one 12-month amount, split it into two six-month payments or opt for monthly instalments.
“I fought for rolling tax exemption and it did happen. I know that somewhere in the halls of Westminster.
“It’s ridiculous isn’t it, how can you stop me driving into town in a 2013 Mini Cooper and charge me high road tax.”
VED is a tax levied on every vehicle using public roads in the UK and the rate is set to increase in line with inflation.
The UK operates three systems of VED, depending on when your vehicle was registered.
The newest, introduced in 2017, is itself split into two rates – one for your first year on the road based on emissions and then a second for after the first year based on the cost of the car.
Motors registered between 2001 and 2017 are taxed based purely on emissions.
Then, for cars registered before 2001, the tax is based on engine size.
Fortunately, there are five key exemptions which could see thousands of Brits pay no tax at all.
Five major VED exemptions
- Low and no-emission vehicles – those emitting less than 100g/km of carbon dioxide registered before 2017
- Historic vehicles – those which are more than 40 years old on a rolling basis
- Vehicles used by disabled people – if you qualify for the higher rate of major disability benefits including Disability Living Allowance, Personal Independence Payment or Child Disability Payment
- Vehicles used for agriculture, horticulture and forestry – including tractors
- Vehicles registered Statutory Off Road Notification (SORN)
It comes after Mike backed a major car tax change which could benefit thousands of British drivers.
The star said he “supported” the proposed move, which has begun to gather steam after a new petition saw a surge in signatures.
Over 7,000 people have signed the call to save many motorists hundreds of pounds by tweaking the rules for road tax on classic cars.
The petition calls on Parliament to reduce the vehicle excise duty (VED) paid on cars between 20 and 40 years old.
Clair Knight, who wrote the proposal, stated: “There are vehicles within the 20 to 40-year age bracket that are well-loved, modern classics and without a reduction in tax, we may see these vehicles disappear from our roads.
“As the owner of a 20-year-old modern classic, which is seldom driven more than 1000 miles a year, I have just had my Vehicle Tax reminder though and even if I were to SORN the vehicle for 6 months of the year, it would still cost me £180 for 6 months.
“I like to take advantage of the occasional sunny day, year-round, so I must pay £320 for this privilege.”
Now, TV star and renowned classic car enthusiast Mike Brewer has thrown his weight behind the campaign.
In an interview with Classic Car Weekly, he said that he “supports” the proposal and that cars over 20 years old have “paid their dues”.
He went on: “I’ve protested before that a vehicle reaches a time in its life where it’s paid its dues’ there is a switch when a car stops becoming a drain on the state and actually starts contributing to the state, and that’s when a car reaches classic car status.
“I believe that after 20 years, the car starts to become a drain on its owner to keep it roadworthy, therefore supporting industries like mechanics, repair shops, restoration, fabrication and engineering and thereby contributing massively to the country.”
At the moment, a car is considered a “historic vehicle” if it was first registered more than 40 years ago on a rolling basis.
The DVLA estimated that there were 338,000 such vehicles in the UK at the end of 2023.
The agency does not provide figures for how many are over 20 years old, but it would likely be hundreds of thousands more.