In the UK, there is an escalating demand for the government to reconsider the Vehicle Excise Duty (VED) for vehicles classified as ‘modern classics’, particularly those between 20 to 39 years old. A petition aiming to alleviate the burden of a significant £760 ‘tax trap’ has gained traction, prompting calls for a formal response from the Treasury. The growing support reflects widespread concern over the scrapping of classic vehicles, often valued for their historical significance, due to excessive taxation costs.

As the current legislation exempts vehicles over 40 years old from VED, many cars that have been deemed too new are facing the dilemma of high road taxes. Motoring experts highlight that hundreds of thousands of these vehicles are being taken off the roads and written off because the excise duty is not justifiable when the cars are of little commercial value. Early predictions suggest that once the tax exemption for vehicles registered before January 1986 takes effect in April 2026, an increased number of modern classics could face obliteration if changes to VED are not made.

This situation raises significant concerns about the future of certain genres of vehicles that not only hold cultural value but have also contributed to driving enthusiasm and investment in the automotive industry. With public sentiment favoring the preservation of these vehicles, the government appears to be under pressure to respond to this growing movement, potentially altering fiscal policy to accommodate a cherished aspect of automotive history in the UK.