Under the current rules, cars registered 40 years ago are exempt from VED, while cars below this threshold are still forced to pay to use the roads. Cars registered between 2001 and 2017 are charged across 13 tax bands, with the highest-polluting models charged £790 per year. A 50% discount on these models will amount to a £395 reduction.
Meanwhile, vehicles registered before 2001 are slapped with a fixed fee of £230 or £375, depending on the engine size. A 50% discount means that owners of vehicles with engines above 1549cc would save around £187.50, while those with engines below this threshold would save £115.
Campaigners stressed that current tax rules create a “disposable” culture, with owners of older cars not enjoying the financial benefits of keeping modern classics.
The Parliament petition said: “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.
“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.”
The petition has been widely backed, with almost 50,000 signatures already secured. A total of 100,000 signatures is required for the issue to be debated by politicians in Parliament. However, the petition still has plenty of time left to run, with responses accepted until the start of August.
As the poll received over 10,000 signatures, the survey received an official Government response rejecting the idea.
HM Treasury said: “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.”