Declare tax exempt status on newly purchased pre-78 car?
Declare tax exempt status on newly purchased pre-78 car?
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Discussion

nimchimpsky82

Original Poster:

21 posts

189 months

Monday 24th September 2018
quotequote all
Hi all

I'm broadly aware of the new tax and MoT laws concerning cars that are 40 years or older. One thing that isn't clear to me, however, is what to do when one buys such a car. The gov.uk guidance states:

What drivers need to do
Drivers don’t have to apply to stop getting an MOT for their vehicle.
However, each time they tax their historic vehicle (even if they don’t pay a fee), drivers will have to declare it meets the rules for not needing an MOT.

When buying a classic car, does one declare that it meets the rules simply by phoning the DVLA -- presumably on the day one buys the car?

Also, the Classic & Sportscar website suggests that "You'll also need to have registered it as a VHI – which you'll do at a Post Office by completing a V112 declaration form." Does this need to be done again every time a classic car changes hands, or is the information kept on the system and does it carry over to the new owner?

Thank very much for your advice.

GoodOlBoy

607 posts

132 months

Monday 24th September 2018
quotequote all
I've never understood why the DVLA don't automatically change a vehicle to Historic status once it becomes eligible.

Anyway to answer your question. Take your V5C to the post office, fill in the relevant form and it'll be taxed at the counter. The post office will then send your V5C off to the DVLA and it'll come back registered as an historic vehicle.

Once it's an historic vehicle it will remain that way, no need for subsequent owners to apply again.

skeeterm5

4,579 posts

217 months

Monday 24th September 2018
quotequote all
I didn’t do anything with mine, just went online to tax it and iirc simple ticked a box and hey presto, taxes without a valid MOT.

S

restoman

1,011 posts

237 months

Monday 24th September 2018
quotequote all
The DVLA don't do the change automatically when a car reaches 40 years because not all cars will qualify - some modified cars for example. Therefore they put the onus upon the owner to make the declaration so that the owner can be prosecuted if the declaration is made incorrectly.

Also, think carefully about declaring your car a VHI and not getting it MOT'd as it may be the case that cars in this category will be the first to be subjected to restricted use / mileage should the powers that be decide to go down that route in the future - something that has already been discussed I understand.

GoodOlBoy

607 posts

132 months

Monday 24th September 2018
quotequote all
restoman said:
The DVLA don't do the change automatically when a car reaches 40 years because not all cars will qualify - some modified cars for example. Therefore they put the onus upon the owner to make the declaration so that the owner can be prosecuted if the declaration is made incorrectly.

Also, think carefully about declaring your car a VHI and not getting it MOT'd as it may be the case that cars in this category will be the first to be subjected to restricted use / mileage should the powers that be decide to go down that route in the future - something that has already been discussed I understand.
The DVLA have never done the Historic tax class automatically, even before the modified requirement came in. A vehicle will be historic purely due to it's age. Modifications have nothing to do with it, they only relate to it's MOT requirement.

I've now taxed three exempt vehicles and have yet to be asked about modifications.

ruhall

578 posts

175 months

Monday 24th September 2018
quotequote all
IIRC, you can't apply for Historic classcfication for taxation purposes until after April 1st in the year that the car is 40 years old on the 1st January of that year.

ie, car is 40 years old Sept 2018, not relevant until Jan 1st 2019, therefore, can apply for Historic classification after 1st April 2019.

MOT, naturally, is different. Just tick that the car is exempt. All helps to keep people on their toes, think how boring it would be if the 40-year exemption for car tax (ved) and MOT were dealt with the same way.

restoman

1,011 posts

237 months

Monday 24th September 2018
quotequote all
GoodOlBoy said:
restoman said:
The DVLA don't do the change automatically when a car reaches 40 years because not all cars will qualify - some modified cars for example. Therefore they put the onus upon the owner to make the declaration so that the owner can be prosecuted if the declaration is made incorrectly.

Also, think carefully about declaring your car a VHI and not getting it MOT'd as it may be the case that cars in this category will be the first to be subjected to restricted use / mileage should the powers that be decide to go down that route in the future - something that has already been discussed I understand.
The DVLA have never done the Historic tax class automatically, even before the modified requirement came in. A vehicle will be historic purely due to it's age. Modifications have nothing to do with it, they only relate to it's MOT requirement.

I've now taxed three exempt vehicles and have yet to be asked about modifications.
Quote ' A vehicle will be historic purely due to its age ' Incorrect - depends upon the extent of the modifications wink

Edited by restoman on Monday 24th September 17:23

GoodOlBoy

607 posts

132 months

Monday 24th September 2018
quotequote all
restoman said:
Quote ' A vehicle will be historic purely due to its age ' Incorrect - depends upon the extent of the modifications wink

Edited by restoman on Monday 24th September 17:23
Really, I've obviously misunderstood. I thought the modification only applied to the MOT exemption requirement not the historic vehicle status.

Has anyone on here been asked about modifications when applying for Historic vehicle status ? I certainly haven't and I taxed a car that had been off the road for forty years only last week.



restoman

1,011 posts

237 months

Monday 24th September 2018
quotequote all
Really.

Also, please be aware that the DVLA often don't understand their own rules and seldom apply them consistently . . . . . . . .

mph

2,376 posts

311 months

Monday 24th September 2018
quotequote all
I've also recently taxed historic vehicles without being asked anything about modifications.

I've also just registered a motorcycle as historic after many years off the road, again with no questions asked.

Does this mean that if a vehicle, that would qualify as historic by age, has been modified, not only does it have to be MOT'd it's also not considered historic ? Surely then road tax is payable. If so at what rate ?


GoodOlBoy

607 posts

132 months

Monday 24th September 2018
quotequote all
restoman said:
Really.

Also, please be aware that the DVLA often don't understand their own rules and seldom apply them consistently . . . . . . . .
Yes really. I's not a matter of the DVLA understanding their own rules, if your vehicle doesn't comply it wont be accepted online.

Because my vehicle hadn't previously been registered as historic I couldn't tax it directly on the DVLA website. I did it at the post office, they logged on and it took all of two minutes.

The car is now taxed and historic. No mention of modifications.

Have you experienced something different ?

lowdrag

13,181 posts

242 months

Tuesday 25th September 2018
quotequote all
So much misunderstanding ans so many myths being put forward. This subject has already been discussed ad nauseam but let us try and put it to bed one last time.

The DVLA have programmed their computer to automatically recognise a car as a VHI when it reaches the 40 yr date. It will then pay zero VED nad will be MOT exempt. This is automatic and requires no action on the owner's part. People seem to think that if thir car is laid up they need an MOT to get it taxed before it comes exempt. Wrong, you just go on line and retax the car but will find a box to tick and this box states:-

(GB only) A vehicle other than a public service
vehicle registered or manufactured 40 years
ago and which has not been substantially
changed in the last 30 years.

So, if you can tick the box you can proceed to tax your car, whether it be on a SORN, out of MOT or whatever. In the case of my XKSS, built by Lynx on the wreck of a 2+2 E-type forty years back, it qualifies on the 30 year rule. Amazingly, it is up to the owner to make the declaration with no proof required and having been part of the negotiations all I can say is that the DVLA realised just how complicated matters were and threw in the towel, making it simple for all.

GoodOlBoy

607 posts

132 months

Tuesday 25th September 2018
quotequote all
lowdrag said:
So much misunderstanding ans so many myths being put forward. This subject has already been discussed ad nauseam but let us try and put it to bed one last time.

The DVLA have programmed their computer to automatically recognise a car as a VHI when it reaches the 40 yr date. It will then pay zero VED nad will be MOT exempt. This is automatic and requires no action on the owner's part. People seem to think that if their car is laid up they need an MOT to get it taxed before it comes exempt. Wrong, you just go on line and retax the car but will find a box to tick and this box states:-

(
Perhaps there's a difference between cars that have just come into the new exemption and older cars that have been off the road for a while.

In the case of the latter, unless your vehicle is already registered as historic the DVLA do not automatically change if for you.

You need to send off your current V5C with the relevant section completed. You will then receive a new V5C and the vehicle is then historic. You can then tax it online.

The alternative is to take your existing V5C to the post office and do it there.

I've just been through this so I know it's correct.




Elderly

3,735 posts

267 months

Tuesday 25th September 2018
quotequote all
lowdrag said:
This subject has already been discussed ad nauseam but let us try and put it to bed one last time. …..

Wrong, you just go on line and retax the car but will find a box to tick and this box states:-

(GB only) A vehicle other than a public service
vehicle registered or manufactured 40 years
ago and which has not been substantially
changed in the last 30 years.

So, if you can tick the box you can proceed to tax your car, ….
There are enough of us who have posted in this thread who have recently taxed our VHIs ( online )
and have seen NO box about modifications to tick.

lowdrag

13,181 posts

242 months

Tuesday 25th September 2018
quotequote all
Perhaps they've changed the format then. I did both of mine on June 1st and had to tick the box. I'll wait for next year to see!

ruhall

578 posts

175 months

Tuesday 25th September 2018
quotequote all
The following is lifted from gov uk website today and doesn't seem to support the automatic 40-year classification. Prior to April this year it said January 2017. I've been monitoring it because I'm waiting to reclassify my Shadow 11:

"Vehicles exempt from vehicle tax
You can apply to stop paying vehicle tax if your vehicle was built before 1 January 1978. You must tax your vehicle even if you do not have to pay.

If you do not know when your vehicle was built, but it was first registered before 8 January 1978, you can still apply to stop paying vehicle tax.

Eligible vehicles
You can apply for these vehicles to be made exempt:

cars
vans
motorcycles
tricycles "

Edited by ruhall on Tuesday 25th September 17:45

mph

2,376 posts

311 months

Tuesday 25th September 2018
quotequote all
The Historic exemption has never been automatic in my experience. Unless you send off your V5C and apply for Historic status it will never happen.

It beats me why the DVLA don't do this as a matter of course.

I've owned at least three vehicles in the last few years that have been off the road for ages and hence were neither taxed nor SORN'd. When the V5C has come back in my name the taxation class hasn't been changed and in each case I've had to send it off again to get them into Historic mode.

The last was only a few weeks ago.

restoman

1,011 posts

237 months

Tuesday 25th September 2018
quotequote all
DVLA = Consistancy ? No. Never.

But Post Office is your best bet . . . . . . . . . wink

nimchimpsky82

Original Poster:

21 posts

189 months

Wednesday 26th September 2018
quotequote all
Thanks all for sharing your experience and in some cases frustration :-)

Lots of useful info in the responses but I suppose I'm still not sure how to proceed on the day of purchase. Suppose the 40+ year old car one has just paid for and insured via the phone or online is in good enough condition to drive home. With a newer car one can go online and tax it using the 12 digit number on the V5C/2; is the procedure for a historic vehicle the same, except that the amount payable will show up on the website as zero? If a trip to the post office is required, then presumably one would need to (a) leave the car with the seller and collect it only once confirmation of its taxed status has been received, which I guess takes several days at least, or (b) have it moved to one's home by means of a classic car transporter, and not start driving until one has received confirmation from the DVLA.

Hope this all makes sense :-)

mph

2,376 posts

311 months

Wednesday 26th September 2018
quotequote all
If the vehicle you purchase is already classed as historic on the V5C the procedure for taxing it is the same as a modern car except that you don't pay anything.

If it's not historic, but is eligible, then you need to fill in the V5C and the other form (I forget the number) and take it to a post office. They will tax it on the spot and give you a receipt as proof.