Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of reducing VED for vehicles ages 20-39 years old by 50%.

At Budget 2014 the Government announced that it would introduce a rolling 40-year exemption from Vehicle Excise Duty (VED) for classic cars. This means that currently vehicles constructed before 1 January 1986 are exempt from paying VED.

The law does not specifically define a vehicle as historic or classic for registration purposes, and it is widely recognised that there are many factors other than age which influence whether a car is considered classic. The Government at the time therefore set 40 years as being a fair cut-off date to distinguish classic cars from older cars.

There are no current plans to reduce VED for cars aged 20 to 39 years. As with all taxes, VED is kept under review and any changes will be considered by the Chancellor in the context of the public finances.