Another Year of Classic Cars Joins the Tax-Free Club

Classic Car | Published on: 17 September 2026 | Updated on: 17 September 2026

Turning 40 has its advantages. For classic car owners, reaching that particular milestone could mean saying goodbye to annual vehicle tax payments.

From 1 April 2026, another year of classic vehicles became eligible for the historic vehicle tax exemption. Cars built in 1985 may now qualify, although there's a little more to it than simply celebrating a 40th birthday.

So, which vehicles are eligible, how do you claim the exemption, and does reaching historic status mean you no longer need an MOT?

Here's what classic car owners need to know.

Is your classic car now exempt from vehicle tax?

Under the rolling 40-year exemption, vehicles built before 1 January 1986 can qualify for historic vehicle tax from 1 April 2026.

If the exact manufacturing date isn't known, a vehicle first registered before 8 January 1986 may also qualify.

Once the correct historic tax class has been applied, the amount payable becomes £0.

However, age alone doesn't guarantee eligibility.

Vehicles used for hire or reward, such as taxis carrying paying passengers, and those used commercially for a trade or business are excluded under the standard historic vehicle tax rules.

If your classic was built in 1985, it's worth checking whether it meets the eligibility criteria.

Does the tax exemption happen automatically?

No, and this is probably the most important thing to know.

If your vehicle has recently become eligible, you'll need to apply to change its tax class to 'historic'.

You must also continue to tax the vehicle, even when the amount payable becomes £0.

Don't simply cancel your vehicle tax and assume the DVLA will automatically update its records because your car has reached the qualifying age.

How do you apply for historic vehicle tax exemption?

The application is made through a Post Office branch that deals with vehicle tax.

You'll need to take the following documents, as applicable:

Your V5C log book, registered in your name.
Your vehicle tax reminder (V11), if you have one.
Evidence of a current MOT if your vehicle requires one.
A completed V112 declaration if you're claiming MOT exemption.

The Post Office will send your V5C to the DVLA, which will issue an updated log book reflecting the change.

If you're due a refund of vehicle tax, this will be processed following the application.

You must make sure your vehicle remains taxed if you intend to use it while the application is being processed.

You can find the full application instructions on the official GOV.UK historic vehicle tax exemption page .

Does historic vehicle status mean your classic no longer needs an MOT?

Possibly, but it's important to understand that vehicle tax exemption and MOT exemption are separate matters.

In England, Scotland and Wales, vehicles built or first registered more than 40 years ago can generally qualify for MOT exemption, provided they haven't been substantially changed during the previous 30 years.

You don't need to submit a separate application simply to stop having annual MOT tests, but you must declare the exemption when taxing your vehicle. The appropriate declaration form may be required.

Northern Ireland has separate testing requirements, so owners should check the rules applicable to their vehicle.

What if your classic car has been modified?

This is where things can become a little more complicated.

Changes to major components, including the chassis, bodyshell, axles, suspension, steering or engine, can affect whether a vehicle qualifies for MOT exemption.

However, not every modification automatically removes eligibility.

The Government's guidance allows for certain alterations, including some changes made to improve safety, efficiency or environmental performance, as well as appropriate replacement parts.

If you've purchased a modified classic or are uncertain about alterations made by a previous owner, it's important to establish whether the vehicle meets the exemption criteria before making a declaration.

You can consult the official GOV.UK MOT exemption guidance or seek clarification from a historic vehicle specialist.

If you cannot confirm that your vehicle meets the relevant criteria, you must not claim MOT exemption.

An MOT may be optional. Roadworthiness isn't.

Even if your classic qualifies for MOT exemption, it must still be safe and roadworthy whenever it is used on public roads.

Owners remain responsible for ensuring their vehicles are properly maintained.

In fact, driving a vehicle in a dangerous condition can result in a fine of up to £2,500 and three penalty points, regardless of whether it's MOT-exempt.

Some classic car owners choose to continue having voluntary MOT tests as an independent annual check.

This can be particularly worthwhile for vehicles that cover relatively few miles or spend long periods in storage.

Older cars can have different maintenance requirements from their modern counterparts, and problems may develop even when a vehicle isn't being used regularly.

Whether or not an MOT is legally required, regular servicing, appropriate maintenance and checks before driving remain important.

Don't forget your classic car insurance

Reaching historic vehicle status doesn't remove the need for suitable insurance when using your classic on public roads.

It's also worth reviewing your existing insurance arrangements if anything about your vehicle or how you use it has changed.

For example, modifications, changes in annual mileage or different storage arrangements may need to be disclosed to your insurer.

Check your policy documents and contact your insurer or broker if you're unsure whether your existing details remain accurate.

At Grove & Dean, we arrange specialist classic car insurance and understand that older vehicles can have different insurance requirements from modern cars.

Whether your vehicle has recently reached its 40-year milestone or has been part of your collection for decades, it's important to have cover that meets your needs.

Forty years old? It's worth checking your status.

If your classic was built in 1985, it could now qualify for historic vehicle tax exemption.

Check the eligibility criteria, apply for the correct tax class and make sure you understand whether your car still requires an MOT.

Above all, keep your vehicle properly maintained and roadworthy, regardless of its exemption status.

Forty might be considered old for a car, but age certainly has some advantages.

Your Classic Could Be Tax-Exempt. Is Your Insurance Up to Date?

Whether your classic has just reached its 40-year milestone or you've owned it for decades, having suitable insurance is important. Explore Grove & Dean's specialist classic car insurance and get a quote today.