From May 2018, the Government is exempting most vehicles made before 1978 from compulsory MOT testing.
The thinking behind the decision, according to the Department for Transport (DfT), is that these cars are “usually maintained in good condition and used on few occasions”.
The change broadens a current exemption for those bought before 1960 and will increase the number of older vehicles legally without an MOT on the road from just below 200,000 to almost 500,000 – about 1.5 per cent of the UK total fleet.
The Department for Transport is introducing the change because the modern MOT does not adequately check historic cars.
Dismissing concerns that classic cars pose a greater risk of failure than modern ones, the DfT says: “We consider the element of risk arising from taking vehicles over 40 years old out of the testing regime is small. The option for owners to submit their vehicles to a voluntary MOT test will remain and they will still, like all vehicle owners, need to ensure that they meet the legal requirement of keeping their vehicle in a roadworthy condition at all time.”
Classic cars have, for many years, been the asset of choice for high-net-worth individuals and UK investors.
Our team at Beavis Morgan has been instrumental in helping clients maintain their capital value and manage their income levels, to assist in continuing to meet their lifestyle goals.
We proactively explore the intricacies of the tax legislation, making sure that all reliefs available to you are utilised and that your interests are safeguarded. We can also assist you with medium and longer-term financial planning to ensure that you, your family, and ultimately future generations of your family, will benefit from your wealth in accordance with your wishes.
For more information and to discuss your tax affairs in further detail, please contact your usual Beavis Morgan Partner.