More than 20,000 drivers could be paying Labour up to £375 to use the roads when they no longer need to, according to new data.
Figures obtained by the DVLA through a freedom of information request revealed that 24,000 classic vehicles built in 1984 and 1985 could still be paying car tax fees when they no longer need to. A breakdown of the statistics showed that drivers of 18,040 vehicles built in 1985 had not shifted onto the historic tax status necessary to avoid paying fees. The data also found that 5,869 vehicles registered in 1984 had not changed their tax status.
Historic tax exemption rules
Classic vehicles older than 40 years no longer need to pay Vehicle Excise Duty (VED) fees due to historic tax exemption rules. However, road users still need to formally tax their model each year despite not needing to pay. Cars registered before 2001 are charged VED fees based on engine size. Those with engines producing 1,549cc and below pay £230 per year, while those above 1,549cc pay up to £375.
Mark Wilkinson, of Heritage Car Insurance, which obtained the figures, said: “We were surprised by just how many owners are still being taxed as though their vehicles were brand new. The historic tax class exists precisely for cars like these, but it isn’t applied automatically, so if you don’t know to ask, you keep paying.”
How to apply for exemption
GOV.UK explains that road users can apply to stop paying for vehicle tax from April 1, 2026 if their vehicle was built before January 1, 1986. Road users who do not know when their vehicle was built can stop paying tax if their car was first registered before January 8, 1986.
Motorists can apply for a historic vehicle tax exemption by visiting high street Post Office stores. To apply, they need a vehicle V5C log book, a vehicle tax reminder letter, evidence of a current MOT or any evidence that a vehicle is exempt from an MOT. Officials have warned that road users who still want to use their vehicle while an application is being processed must ensure the car is still taxed.
