Written by ROB SMYTH
BURTON’S MP has revealed his ‘delight’ after the Coalition government corrected a historic wrong in the Budget by reinstating the rolling tax exemption for classic cars – now set at 40 years.
Andrew Griffiths said the move would provide a boost to the area such as the number of people who attend classic car events at the National Memorial Arboretum or the annual car show in Rolleston.
Previously only cars built before January 1, 1973 were exempt from road tax, after the Government abandoned the previous 25-year rolling scale in 1997.
However, from April 2014 any car manufactured before January 1, 1974 will be entitled to a free tax disc.
Mr Griffiths said: “On the back of the move to freeze beer duty, the Government also helped out people who enjoy classic cars.
“This is great news for the many people in the area who enjoy restoring classic cars and also several businesses that earn a living through this endeavour.
“It will mean it will be cheaper to own this type of car and will see a range of events such as the car show, which I love to attend, that is held in Rolleston.
“It will mean more people will be able to attend shows like these, boosting the area and the economy.”
Among the classic cars that will qualify for exemption under the new rules are early versions of the Austin Allegro, Reliant Robin and MGB V8.
As a result of the change, one classic car insurer is predicting that the value of cars built in 1973 could increase by up to 10 per cent.
“The Chancellor’s decision will provide a springboard for classic car lovers to enter the market at an entry level,” said Angus Forsyth, managing director of classic car insurer Hagerty International.
“It will add 1973 cars to the exemption list, including popular classics such as the MGB GT and Triumph Spitfire, all of which could experience an increase in value of up to 10 per cent due to the desirable fall in annual running costs.
“This decision, coupled with the freeze in petrol duty, is great news for the industry and will ensure there are some considerable savings to be made by consumers.”