{"id":20677,"date":"2022-09-16T15:42:11","date_gmt":"2022-09-16T14:42:11","guid":{"rendered":"https:\/\/taxfix.com\/en-uk\/?p=20677"},"modified":"2026-01-28T06:25:50","modified_gmt":"2026-01-28T06:25:50","slug":"do-i-have-to-pay-capital-gains-tax-on-classic-cars","status":"publish","type":"post","link":"https:\/\/taxfix.com\/en-uk\/investor-capital-gains-tax-returns\/do-i-have-to-pay-capital-gains-tax-on-classic-cars\/","title":{"rendered":"Do I have to pay Capital Gains Tax on classic cars?"},"content":{"rendered":"\n<p>Want to know the tax implications when you sell a classic car in the UK? Whether you\u2019re swapping out your BMW Alpina for something new or you simply no longer need a vehicle altogether, there are a few things you should know, especially when it comes to capital gains tax on cars! <\/p>\n\n\n\n<h2 class=\"wp-block-heading\">First of all, how does a car become \u2018classic\u2019?<\/h2>\n\n\n\n<p>Some argue that once a car is 25 years old, it automatically becomes a classic car; some say 30 years and others say 40. Some even argue a classic car depends on the make and model just as much as the age.<\/p>\n\n\n\n<p>As you can see, there is no general agreement. But HMRC will consider your car a classic if it meets these two requirements:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>It\u2019s over 15 years old&nbsp;<\/li>\n\n\n\n<li>It\u2019s worth \u00a315,000 or more<\/li>\n<\/ul>\n\n\n\n<p>But not all cars over 15 years old are classed as <em>classic<\/em>. Many people aren\u2019t aware, but there are multiple categories for old vehicles, including vintage, veteran and post-vintage cars.&nbsp;<br><\/p>\n\n\n<\/div> <!-- .c-body -->\n\n<div class=\"b-highlight-mini m-yellow m-align-left\">\n    <div class=\"b-block-body\">\n        <h2>A quick breakdown<\/h2>\n<p>We know, it\u2019s a lot to take in! So here\u2019s a quick breakdown:<\/p>\n<p><!-- \/wp:paragraph --> <!-- wp:list --><\/p>\n<ul>\n<li>Veteran cars: manufactured before WW1 (1914)<\/li>\n<li>Vintage cars: manufactured before 1930<\/li>\n<li>Post-vintage: manufactured between 1930-1945<\/li>\n<\/ul>\n\n    <\/div>\n<\/div> <!-- .b-highlight-mini -->\n\n<div class=\"c-body\">\n\n\n\n\n<h2 class=\"wp-block-heading\"> Do I have to pay Capital Gains Tax on cars?<\/h2>\n\n\n\n<p>Good news! Most cars are exempt from <a href=\"https:\/\/taxfix.com\/en-uk\/glossary\/capital-gains-tax-cgt\/\" target=\"_blank\" rel=\"noreferrer noopener\">Capital Gains Tax<\/a> (CGT), even classics. Why? Simply because they are deemed \u2018<a href=\"https:\/\/www.gov.uk\/hmrc-internal-manuals\/capital-gains-manual\/cg76700\" target=\"_blank\" rel=\"noreferrer noopener\">wasting assets<\/a>\u2019 with a lifespan of under 50 years.&nbsp;<\/p>\n\n\n\n<p>CGT only applies to valuable assets such as:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Property<\/li>\n\n\n\n<li>Jewellery<\/li>\n\n\n\n<li>Antiques<\/li>\n\n\n\n<li>Art<\/li>\n<\/ul>\n\n\n\n<p>This basically means HMRC doesn\u2019t expect you to profit from selling your car, so if you do sell it for a profit, you won\u2019t need to pay <strong>capital gains tax on cars<\/strong>. It\u2019s a win-win situation!<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">When does Capital Gains Tax on cars apply? <\/h2>\n\n\n\n<p>While you generally don\u2019t have to pay <strong>capital gains tax on cars<\/strong>, there are exceptions. For example, if HMRC suspects you are purchasing classic cars and selling them with the sole intention of making a profit, this is classed as trading. And it&#8217;s taxable at either 25% or 19% depending on how much is earned.<\/p>\n\n\n\n<p>This is called <a href=\"https:\/\/taxfix.com\/en-uk\/glossary\/company-tax\/\" target=\"_blank\" rel=\"noreferrer noopener\">Corporation Tax<\/a>.<\/p>\n\n\n<div class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/taxfix.com\/en-uk\/wp-content\/uploads\/25Q3_TS_Rebrand_UK_Website_Content_Blog-and-guides_6-benefits-of-a-contractor-accountant.png\" width=\"1280\" height=\"672\" srcset=\"https:\/\/taxfix.com\/en-uk\/wp-content\/uploads\/25Q3_TS_Rebrand_UK_Website_Content_Blog-and-guides_6-benefits-of-a-contractor-accountant-300x158.png 300w, https:\/\/taxfix.com\/en-uk\/wp-content\/uploads\/25Q3_TS_Rebrand_UK_Website_Content_Blog-and-guides_6-benefits-of-a-contractor-accountant-1024x538.png 1024w, https:\/\/taxfix.com\/en-uk\/wp-content\/uploads\/25Q3_TS_Rebrand_UK_Website_Content_Blog-and-guides_6-benefits-of-a-contractor-accountant-768x403.png 768w, https:\/\/taxfix.com\/en-uk\/wp-content\/uploads\/25Q3_TS_Rebrand_UK_Website_Content_Blog-and-guides_6-benefits-of-a-contractor-accountant.png 1280w\" class=\"wp-block-image__media\" sizes=\"auto, (min-width: 1000px) 768px, calc(100vw - 48px)\" alt=\"6 benefits of a contractor accountant - Taxfix\"><\/div>\n\n\n<h2 class=\"wp-block-heading\">What about vehicle tax?<\/h2>\n\n\n\n<p>Even if you\u2019re not paying <strong>capital gains tax on cars<\/strong>, all vehicles, including classic ones, are still subject to vehicle tax (also known as road tax).<\/p>\n\n\n\n<p>However, there is an exemption &#8211; if your car is 40+ years old (manufactured more than 40 years before 1st January of that year) you will <a href=\"https:\/\/www.gov.uk\/historic-vehicles\/vehicles-exempt-from-vehicle-tax\" target=\"_blank\" rel=\"noreferrer noopener\">no longer have to pay to tax your vehicle<\/a>.<\/p>\n\n\n\n<p>Bear in mind that vehicle tax is the responsibility of the registered owner.<\/p>\n\n\n\n<p>If you\u2019ve had a car for over 25 years, then you have probably been driving long enough to remember the days when you could transfer your existing tax to another vehicle, however, this is no longer the case.&nbsp;<\/p>\n\n\n\n<p>So, once you\u2019ve said your goodbyes to your vehicle:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>You will likely receive a refund&nbsp;<\/li>\n\n\n\n<li>The new registered owner will have to sort out the tax<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Want an extra helping \ud83d\udc4b?<\/h2>\n\n\n\n<p>Capital Gains Tax, Corporation Tax, Vehicle Tax\u2026 it can all be a bit mind-boggling. That\u2019s why we offer a range of services that ensure you won\u2019t have to deal with the tricky stuff! Check out our <a href=\"https:\/\/taxfix.com\/en-uk\/services\/\" target=\"_blank\" rel=\"noreferrer noopener\">services<\/a> here.<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Want to know the tax implications when you sell a classic car in the UK? Whether you\u2019re swapping out your BMW Alpina for something new or you simply no longer need a vehicle altogether, there are a few things you should know, especially when it comes to capital gains tax on cars! First of all, [&hellip;]<\/p>\n","protected":false},"author":30,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[458,462],"tags":[70,102,418],"class_list":["post-20677","post","type-post","status-publish","format-standard","hentry","category-investor-capital-gains-tax-returns","category-tax-efficiency","tag-capital-gains-tax","tag-hmrc","tag-invest"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Do I have to pay Capital Gains Tax on classic cars? &#8211; Taxfix<\/title>\n<meta name=\"description\" content=\"Want to know the tax implications when you sell a classic car in the UK? 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