A 25-year-old car tax-free? The scheme explained.
Wondering if a 25-year-old car is tax-free? You are not the only one! Many car lovers and owners of old cars want to know about the tax situation for their beloved vehicles. Let’s look at the details of the vintage car scheme 25 years together.
What does the oldtimer scheme of ’25 years’ mean?
The vintage car scheme ’25’ years, also known as the oldtimer scheme, is a scheme originally designed to reward owners of classic cars by giving them exemption from road tax. But as you may know, the rules for this scheme have been changed several times over the years.
Why have the rules changed?
The changes were made mainly to prevent abuse. In the past, old diesel and LPG cars were often used as daily drivers, depriving the government of revenue from road tax. To counter this, the rules have been tightened.
What are the current rules?
A 25-year-old car, is currently not tax-free. From 40 years, you no longer have to pay road tax, according to current legislation. This means that if your car is 25 years old, you will have to wait another 15 years before it becomes fully tax-free. But don’t worry, there are still some benefits you can take advantage of!
Benefits for cars 25 years and older
Although full exemption only comes at 40 years of age, cars aged 25 years and above can qualify for a transitional scheme. This scheme offers a reduced road tax rate, which can make a significant difference in your annual costs.
What does the transitional arrangement entail?
The transitional scheme means you pay only a quarter of the normal road tax rate. This applies to petrol cars that are between 25 and 40 years old. Diesel and LPG cars are unfortunately excluded from this scheme, due to the aforementioned abuse in the past.
What about the MOT?
Another important thing to keep in mind is the MOT inspection. A different frequency of inspection applies to cars aged 25 years and above. If your car is 30 years or older, it only needs to be inspected once every two years, instead of annually. This can save you not only time but also money.
Is it worth it?
You may be wondering if it is worth keeping a 25-year-old car, given the costs you still have to pay. The answer depends on your situation. If you are a classic car enthusiast and enjoy the maintenance and driving experience, then it can definitely be worth it. Moreover, the value and sentiment of such a car can increase significantly over the years.
What are the drawbacks?
Of course, there are also disadvantages to owning an older car. Parts can be harder to find, and repairs can be more expensive. Moreover, older cars tend to be less fuel-efficient and environmentally friendly than modern vehicles.
So, are you a fan of vintage cars? Then fortunately, there are some benefits these days. Tip: Check out our blog on oldtimer fairs!
