Ford, Vauxhall and Austin cars 'no tax' after DVLA April change - action required

Vehicles which sold in their millions have now crossed a significant milestone and are no longer required to pay tax from this month - but motorists must take action. This comes as campaigners are increasingly highlighting how older, dependable cars are being scrapped at alarming rates, with owners facing annual tax bills nearly equivalent to the vehicle's value due to slightly more powerful engines. From this month, a wave of motors manufactured four decades ago will achieve 'classic' status, exempting them from car tax. In the UK, vehicles over 40 years old are exempt from paying Vehicle Excise Duty (VED), commonly known as "road tax," on a rolling basis, provided they aren't used for commercial purposes. As of 1 April 2026, motors built before 1 January 1986 qualify for exemption. Owners must still register their vehicles for tax, even though the charge is £0. Among the newly tax-free vehicles are models that were once ubiquitous on Britain's roads, with millions sold. They were a common sight on virtually every street. Ford Escort: The market leader. Ford Sierra: Gaining popularity, frequently second in sales. Austin Metro: Top British Leyland seller. Vauxhall Cavalier: Key competitor to the Sierra. Ford Fiesta: Popular supermini. Vauxhall Astra: Strong competitor in the family car market. Ford Orion: Saloon version of the Escort. Austin Montego: Representative of the Austin Rover range. Austin Maestro: Mid-range hatchback. Ford Granada: Executive car choice To secure the exemption, drivers must officially reclassify their vehicle as "historic" with the DVLA. Each year on 1 April, the exemption rolls forward, bringing more older vehicles into eligibility. The motor must be over 40 years old, and no "substantial changes" - including modifications to the chassis, bodywork, or engine - can have been made in the past 30 years. Vehicles over 40 years old that haven't undergone substantial alterations are also exempt from MOT testing. The exemption doesn't extend to vehicles utilised for commercial activities, including hire cars. Meanwhile, momentum is building behind a petition that's nearing a crucial milestone. Close to 50,000 people have backed the campaign on the parliament website, calling for revised tax bands on vehicles over two decades old. This represents half the 100,000 signatures required to trigger consideration for a parliamentary debate - potentially heaping pressure on the government to act. The petition states: "Reduce Vehicle Excise Duty by 50% for vehicles aged 20 to 39 years. Introduce a 50% VED reduction for cars aged 20-39. High taxes force functional vehicles to be scrapped, creating a "disposable" culture. Keeping existing cars is greener than building new ones, as it preserves embedded carbon. This "Young-Timer" bracket supports the circular economy and UK heritage." It continues: "Manufacturing a new car creates massive carbon debt. We must move from a "disposable" car culture to a circular economy. Keeping a functional 20-year-old car on the road is often greener than building a new one, as it preserves the embedded carbon already spent. Current VED rates force many well-maintained cars to be scrapped prematurely. We call for a 50% "Transition to Historic" tax discount to encourage repair, support the UK heritage industry, and reflect the low mileage of modern classics." But with these vehicles now worth very little - frequently under £1,500 - the yearly tax bill can account for 25-50% of the car's entire value, prompting owners to have them scrapped. This means motors producing more than 225g of CO2 emissions per kilometre face Vehicle Excise Duty (VED) charges - with those emitting 226-255g/km paying £760 and those over 255g/km paying £790, set to increase in April 2026. Experts have concluded that it's far more environmentally sound to keep an older vehicle running than to scrap it and buy a newly-manufactured replacement. The Guardian reported that producing a medium-sized new car can generate over 17 tonnes of CO2 - roughly equivalent to three years of gas and electricity consumption in the typical UK home. Mike Berners-Lee and Duncan Clark wrote: "With this in mind, unless you do very high mileage or have a real gas-guzzler, it generally makes sense to keep your old car for as long as it is reliable - and to look after it carefully to extend its life as long as possible. If you make a car last to 200,000 miles rather than 100,000, then the emissions for each mile the car does in its lifetime may drop by as much as 50%, as a result of getting more distance out of the initial manufacturing emissions." New 2026-2027 car tax rates for vehicles registered between March 1, 2001, and April 1, 2017 Up to 100g/km - £20 Between 101 and 110g/km - £20 Between 111 and 120g/km - £35 Between 121 and 130g/km - £170 Between 131 and 140g/km - £200 Between 141 and 150g/km - £225 Between 151 and 165g/km - £275 Between 166 and 175g/km - £325 Between 176 and 185g/km - £360 Between 186 and 200g/km - £410 Between 201 and 225g/km - £445 Between 226 and 255g/km - £760 Over 255g/km - £790 As the petition exceeded 10,000 signatures, the Treasury issued a response. It read: "The Government has no plans to reduce Vehicle Excise Duty liabilities for vehicles aged 20 to 39 years. The Government keeps all taxes under review and the Chancellor makes decisions at fiscal events. 10 popular models hit hardest by VED ‘tax trap’ Model Annual road tax rate Audi TT 1.8T Chrysler PT Cruiser Ford Galaxy 2.3 Ford Mondeo V6 Jaguar X-Type 2.0-litre Auto Land Rover Freelander 2 i6 Saab 900 Convertible Subaru Forester 2.5 XT Vauxhall Zafira VXR Volkswagen Golf R32 "Revenue from motoring taxes helps ensure we can continue to fund the vital public services and infrastructure that people and families across the UK expect. For example, by 2029/30, the government will commit over £2 billion annually for local authorities to repair, renew and fix potholes on their roads – doubling funding since coming into office. This record level of funding will enable the government to exceed its manifesto commitment to fix an additional 1 million potholes per year by the end of the Parliament." To read the petition, sign up and view the full Treasury response, click here .