Skip to main content

Motor Vehicles: Excise Duties

Volume 471: debated on Wednesday 30 January 2008

To ask the Chancellor of the Exchequer what the annual cost to the Exchequer would be of restoring the exemption from vehicle excise duty for 25 year old vehicles. (178839)

Vehicles built before 1 January 1973 are eligible to be licensed as exempt from payment of vehicle excise duty provided they are not in commercial use.

The number of vehicles over 25 years of age that are currently subject to payment of vehicle excise duty is 183,000. The most recently available licensing data do not completely disaggregate this number by applicable vehicle excise duty rate.

An extension of the exemption would potentially affect cars, vans, motorcycles, motorised tricycles, buses and heavy goods vehicles across all vehicle excise rates excepting those for vehicles registered March 2001 onwards. However, it is not therefore possible to determine the cost to the Exchequer of extending the exemption.

Further extension of the exemption for classic vehicles would be inconsistent with the Government's overall policy intent in vehicle excise duty which is to give rates an environmental focus.