How to register a vehicle of historic interest

As we've discussed elsewhere on this blog, once a car becomes 40 years old it becomes eligible for what's known as 'Vehicle of Historical Interest' status. In most, although (as we are about to see) not all cases, this means that the owner of the vehicle no longer has to pay vehicle tax on the car, or submit it for an annual MOT.

This incentive for classic car owners has been around since 2018, in fact, when the Government introduced their new 40-year rolling exemption for vehicles. That means that more classic cars (and motorbikes) gain exemption each year.

For example, this year – under some provisions, which we will run through shortly – you are eligible to stop taking the annual MOT, and paying for vehicle tax, if your vehicle was built before 1st January 1982.

However, it's important to remember that acquiring this status doesn't simply happen automatically once your vehicle turns 40. Instead, you have to apply to have your vehicle registered.

Strap in, then, as we explain how to register your car in the Historic Interest category. It's well worth getting to know how this can be done, as a successful application will mean considerable annual savings.

For one thing, you will become exempt from vehicle tax – or Vehicle Excise Duty (VED). On top of that, and depending on exactly what status it qualifies for, you may become exempt from an annual MOT – although many owners of older vehicles do continue to put their cars in for the annual test, which can be a prudent way of ensuring that an older car is still roadworthy.

Given all this, one of the few outgoings left to you will be your annual classic car insurance premium. And, given the age of your vehicle, we would urge that this level of specialist modern classic car insurance becomes more essential than ever at around this age.

Vehicles of Historical Interest: the law

The Government's recent 40-year exemption of Vehicle Excise Duty (VED) for classic vehicles means that a vehicle, once it turns 40, becomes classified as ‘historic’ – and eligible for free car tax (VED).

The updates to this rolling system take place on 1st April each year. So, for instance, on 1st April 2022, all vehicles built before 1st April 1982 become eligible for Historic Vehicle car tax, rated at zero pounds per annum.

As we noted in our feature, that included early iterations of some iconic 1980s classics, from the Mk2 Vauxhall Cavalier via the Talbot Samba and E28 BMW 5 Series to Triumph's swansong, the Acclaim.

It's worth noting that the date that the Government will use to count from is your car's production date, rather than its registration date. This means that if, for example, you can show that your car existed in an unregistered state for a year or two before it was first registered and driven, you may be able to hit that magic 40-year birthday earlier than you thought.

In essence, as soon as you can show that your car was either built or registered 40 years ago, you can put in your claim.

How to apply for Vehicle of Historic Interest status

Once your car hits the all-important four-decade milestone, you must submit your application for Vehicle of Historical Interest status through the Driver and Vehicle Licensing Agency (DVLA).

First, you should go to Section 7 of your vehicle log book (or V5C) and complete the Tax Class section, altering it to ‘Historic’. Next, sign and date the bottom of that page and take the V5C along to a VED-issuing Post Office. You can use the Post Office's online Branch Finder tool to find your nearest suitable branch.

You should also bring along your vehicle tax reminder letter (V11), if you have one, plus an MOT certificate that is valid when the tax starts – or evidence of your vehicle’s exemption from an MOT (V112). Finally, and for Northern Ireland drivers only, you'll need to bring along your classic car insurance certificate or cover note.

The Post Office will issue your new, Historic Vehicle car tax without charge, and will also send on your completed V5C form to the DVLA in Swansea. The latter will send you an updated log book.

You will also receive a refund, if you are entitled to one, on any vehicle tax you have paid that you weren't liable for. If you don't get this refund within six weeks of getting your updated log book back, you can chase your refund through DVLA.

And don't worry: you can still use your vehicle while your application is being processed.

Vehicle Excise Duty (VED) and Historic Vehicles

Note that, if your vehicle is 40+ years-old, you must still go through the taxation process each year, either at a Post Office or online. So yes, once your car is registered as a Vehicle of Historic Interest, you still need to tax your vehicle – it's simply that this annual tax is now rated at zero pounds.

The DVLA will send you a letter each year before your tax is due to expire. Remember that it's illegal to drive your vehicle if you have not taxed it. You can be fined £80 if you do not tax your vehicle on time. You will also need to check with your modern classic car insurance provider, as having your vehicle in an untaxed state may invalidate your policy in the event of any claim.

Note, also, that your vehicle will not be exempt from vehicle tax if it’s used for hire or reward (for example, it’s used as a taxi for paying customers) or it’s used commercially.

Contact DVLA if you’re not sure whether or not your vehicle is exempt.

Historic vehicles and the MOT

The good news, when it comes to MOT exemption, is that you do not have to apply to stop getting an MOT for your vehicle each year. That record will simply update itself once your vehicle turns 40, meaning that it's just the VED exemption for which you will need the above paperwork.

However, and staying with the MOT topic, even though your 40-plus vehicle no longer needs to take the test, you must still keep it in a roadworthy condition. You could find yourself facing a fine of up to £2,500, plus three penalty points on your driving licence, for driving a vehicle that's found to be unsafe.

You may also find that your modern classic car insurance policy won't pay out in the event of an accident or damage to your vehicle, if it's found to have been in a dangerous condition at the time.

Let's look at the MOT rules for 40-plus-year-old vehicles in a little more detail. At the same time as they introduced the new VED exemption for older cars, the Government also introduced the new ruling that cars of this age will no longer have to submit for an MOT – essentially an annual roadworthiness check – every year.

This new, annually renewing scheme replaced the previous set of rules, which held that vehicles needed to date back before 1960 to qualify for exemption.

So, on the face of it, all good news – once your vehicle attains the magic four-zero, you no longer need to put it in for an annual MOT.

Cue some very useful savings that you can plough back into your vehicle, putting them towards such essentials as running maintenance and repairs, fuel, and your classic car insurance.

However, you should be aware that the MOT rule is not quite as simple as this. The rules state that any vehicles which have undergone ‘substantial changes’ over the past 30 years still have to take an annual MOT.

So how is a 'substantial change' defined, exactly? Well, the government’s website does provide some fairly comprehensive guidance on what sorts of work to your car will be classed in this way.

Essentially, if your classic has had work on any of these integral parts over the last three decades, the chances are it won't qualify for MOT exemption:

• Chassis, including any sub-frames.
• Axles and running gear. This includes suspension and steering systems.
• Engines. Changes to the number of cylinders would be included here.

MOT exemption: those 'substantial changes' in more detail

Let's take a closer look at those changes that can affect your car's MOT exemption.

Chassis

Changes to your chassis or monocoque body shell may be classed as 'substantial'. These include any sub-frames. The good news for the more conscientious restorers, however, is that replacements of the same pattern as the original are not considered a substantial change.

This feeds into a wider practice we support here at Lancaster Classic Car Insurance: using original parts and configurations wherever possible.

As a classic car owner, you may on occasions struggle to find the right part you need, particularly for a vehicle that has been out of production for several decades. The good news, however, is that lots of parts for period vehicles are still available – either on the used market, or still being manufactured.

We salute the great work that Britain's various classic car owners' clubs have done here, both as a resource for fans to trade the parts they need and in advocating for key parts to remain in production.

If you own a classic, we would strongly recommend that you join the right owners' club for your car. The benefits, from modern classic car insurance discounts to membership of a friendly, knowledgeable community, are numerous.

Axles and running gear

This is an area where you are likely to have needed to make 'substantial changes'. The ruling states that any changes to the type and/or method of either the suspension or the steering will be classified in this way.

Engines

If your car now features a different engine to the one it had when new, this is – perhaps unsurprisingly – considered to be a 'substantial change'. So, for instance, if the car engine now features a different number of cylinders – either more or less – to those it had when first registered, this is a clear giveaway that major changes have been carried out.

If, on the other hand, the engine is still substantially the same, merely with some changes to its cubic capacity, this change should not get filed under 'substantial' and you should be exempt from MOT testing.

Note that you'll need to declare any changes such as these, the next time you apply for MOT exemption. We'll go into how you do this a little further down.

Permissible changes under the 30-year rule

Just to complicate things a little further, certain changes of the type listed above are still allowed (and not classed as 'substantial') if they fall into certain specific categories.

For example, changes that are made to preserve a vehicle are allowed – however, in all cases these must be when the original type parts are no longer reasonably available.

A second class of acceptable changes are those of a type that can be demonstrated to have been made when vehicles of the type were in production or in general use (within 10 years of the end of production).

So, if you have made changes to your 1981 Ford Cortina in the last 30 years, but they are of a kind that would have been made during that vehicle's own lifetime, rather than being obviously aftermarket, these changes may be deemed to be in keeping with the car's 'Historical Interest' classification, and you may be exempt from the MOT.

Another category, concerning axles and running gear changes in particular, features any changes that have been made to improve efficiency, safety or environmental performance.

This stands to reason: if you have made changes in the last 30 years that improve the car's safety or environmental credentials, it seems appropriate that you should not be penalised.

Finally, if you have a commercial vehicle and can demonstrate that the changes you have made were also carried out when that vehicle was in general commercial use, you should be excused from requiring an annual MOT.

How to apply for MOT exemption

If, after having read through the guidance to which we linked above, you believe that your classic is suitable for MOT exemption, your next step is to complete a V112 form, which can be obtained either online or – once again – at your local Post Office.

The form, to give it its full title, is a ‘Declaration of exemption from MOT’. You'll need to fill out one of these for each classic vehicle that you own.

Note that, even if your vehicle has been classed as MOT-exempt, you'll need to declare this fact each time you apply for VED exemption as outlined earlier in this article.

No longer MOT testing? Keep your classic safe

Importantly, even if your vehicle has been classed as MOT-exempt, you should still perform regular, thorough maintenance checks to make sure that the car is still roadworthy. This will be essential, both for the safety of yourself, your passengers and other road users, and to ensure that you are fulfilling the terms of your Lancaster modern classic car insurance policy.

Some key safety checks to carry out at regular intervals include:

Brakes

Your car's brakes are, of course, one of its most essential safety features. As such, it's important to check them regularly. This is especially true during the winter months, when icy or wet roads make for more difficult driving conditions and brakes must be performing effectively.

To test your brakes at the start of a journey, simply press down on the footbrake as you move off. The response should feel sharp, without any pull to one side or the other. If the brakes feel ‘spongy’ or take time to react, you should take them along to a garage and get them looked at by a professional mechanic.

Fluids

You should check all your car's fluid levels – engine oil, brake fluid, windscreen washer and coolant are the essentials here. You can find out how to check all of these in your car's handbook.

Tyres

You're looking for three things: pressure, tread depth, and general state of health. The tyre pressures should be as stated in the handbook, or on a sticker inside the driver door. When it comes to tread depths, these should be the UK minimum – 1.6 millimetres – or above.

You may be familiar with the 20p tread test: if you put a 20 pence piece in your tyre tread grooves and the entire outer band of the coin disappears inside the groove, your tyre treads are fine. If, however, some of that outer band is still visible, your treads are now too shallow and the tyre needs replacing.

Finally, inspect your tyre for any general signs of wear and tear – splits, cracks etcetera. Too many of these will render the tyre unsafe.

Lights and bulbs

Testing their various lights is one safety check that many drivers forget to carry out regularly. However, the truth is that your lights are as integral a part of the car's overall safety as anything else – both for helping you to see the road clearly, and for making sure that you (and your intentions) can be seen by other drivers.

Check your headlights and indicators at the front, plus your rear and brake lights, and finally your hazard lights.

Windscreens and windscreen wipers

Malfunctioning windscreen wipers are a common reason for MOT failure. Even after your car stops legally requiring an MOT, we'd urge you to continue to make regular checks on your wipers. Check that they are cleaning the windscreen adequately, as clear forward vision is so essential for safe driving. Do also make sure that the windscreen itself has no cracks or chips.

Some modern classic car insurance policies will include windscreen cover: take a moment to verify whether your own policy includes this valuable feature.

Modern classic car insurance: an essential companion at every stage of your classic's life

Many modern classics are now starting to reach a point when they are no longer liable for vehicle tax and/or annual MOT testing. These exemptions are a valuable perk for classic car owners – and, we think, a fair reflection of the inimitable addition to British life and culture that well-tended classic cars provide.

One thing that you will need to keep providing for your period vehicle, though, is some suitable modern classic car insurance. And, here at Lancaster Insurance, we have decades of experience helping owners find the cover they need.

Why not contact us today for a modern classic car insurance quote?