Overview

• Conservative figure Richard Holden warned that Rachel Reeves could end the classic-car vehicle tax break in the 26 November Budget, calling it a potential “tax grab.”
• HM Treasury said tax decisions are made at fiscal events and declined to comment on speculation about future changes.
• Roughly 298,000 vehicles more than 40 years old could be affected if the exemption is removed, according to Inter Cars data cited in reports.
• The exemption was created in 2014; under current guidance many vehicles over 40 years old are MOT-exempt unless substantially changed, and cars built before 1 January 1985 can stop paying vehicle tax from 1 April 2025.
• Hagerty UK’s Mark Roper said scrapping the break would hurt owners and a sector he says contributes nearly £3 billion in taxes, as analysts cite wider fiscal pressures that Reeves has disputed.