According to multiple reports, vehicles in the UK over 40 years old are exempt from paying VED on a rolling basis, provided they are not used commercially. As of 1 April 2026, vehicles built before 1 January 1986 qualify for this exemption. Owners must still tax their vehicles annually, even if the fee is £0.
To secure the exemption, drivers must officially reclassify their vehicle as 'historic' with the Driver and Vehicle Licensing Agency (DVLA). The vehicle must be over 40 years old and no 'substantial changes'—such as to the chassis, body, or engine—can have been made within the last 30 years. Vehicles over 40 years old that have not been substantially changed are also exempt from MOT testing.
The exemption does not apply to vehicles used for commercial purposes, such as hired cars. Meanwhile, a petition on the parliament website has gathered almost 50,000 signatures calling for a 50% VED reduction for vehicles aged 20 to 39 years. The petition needs 100,000 signatures to be considered for a parliamentary debate.
The top-selling cars in the UK in 1986 included the Ford Escort, Ford Sierra, Austin Metro, Vauxhall Cavalier, Ford Fiesta, Vauxhall Astra, Ford Orion, Austin Montego, Austin Maestro, and Ford Granada. Many of these models may now qualify for historic vehicle status. The Department for Transport has updated advice on MOT exemption for historic vehicles, though specific changes to the guidance remain unclear.