Vehicles registered before March 1, 2001 will have Vehicle Excise Duty (VED)charged as determined by engine size.
Cars with an engine smaller than 1549cc will pay £145 each year, while those will engine sizes over this will pay £230.
CO2 emissions then apply; these range from Band A (up to 100g/km of CO2) to Band M (over 255g/km).
Depending on where you sit on the scale, this could set you back from nothing, to an extra £505 each year.
You can pay for your VED by phone, online or at a post office. You can also choose to pay direct debit, but be aware if you choose to pay monthly then this incurs a 5% extra charge (or twelve months’ tax)
When you sell a car, your tax is no longer transferred. This means if there is any tax greater than one month still remaining when you transfer ownership, you’ll receive an automatic refund.
If you’re buying a car, you’ll have to be very careful as you will have to tax the vehicle before driving it home – no exceptions.
The Historic Vehicle taxation applies to any vehicle that’s 40-years-old or more. This means any car that was produced (rather than registered) before 1977 is eligible for free VED.
The rolling system updates each April. For instance, April 2017 reclassifies all vehicles built prior to January 1, 1977.
For more details, read our blog post on how to declare your classic car or motorcycle as a Vehicle of Historic Interest.
If you tuck your car away for the winter, be sure to complete a Statutory Off Road Notification (SORN) and advise the DVLA that it will not be kept on the road, nor will you be driving it.
Once your VED expires you must declare your classic off-road via SORN, or re-tax it immediately. Failing to SORN when necessary carries an automatic penalty of £80.
Fortunately, you can now arrange SORN over the phone, by calling 0300 123 4321.
To find out about the VED charge for your vehicle, visit the Gov website