The Treasury has given a major update to calls for cars built in one 19-year period to get a massive tax cut. Motorists have complained that some cars are being scrapped because road tax has soared so much for certain models.

Rather than pay as much as £760 a year people are said to be having their car crushed – even though it’s actually more environmentally friendly to keep them going. A petition on the parliament website has soared to 39,915 signatures – and if it gets to 100,000 it should provoke a debate among MPs.

The Treasury has now given a response on the potential for giving a Vehicle Excise Duty (VED) cut to vehicles aged from 20 to 39 years. The petition, created by Heitor Mazzotti called on Chancellor Rachel Reeves to: “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.”

However, in a response today, the Treasury said there are ‘no plans’ for a change – but also added it would keep the tax ‘under review’: “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.

“Vehicle Excise Duty (VED) is a tax on vehicles used or kept on public roads. Different rates apply to cars, vans, and motorcycles, and the rate for each vehicle is calculated according to a range of factors, such as its date of first registration, weight, or CO2 emissions.”

Currently, vehicles which are 40 years old are exempt from VED and are classed as ‘classics’. The Treasury added: “At Budget 2014 the Government at the time 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 1985 are exempt from paying VED. From 1 April 2026 vehicles constructed before 1 January 1986 will become exempt from 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. While there are no current plans to reduce VED for cars aged 20 to 39 years, the Government keeps all taxes under review, and the Chancellor makes decisions on tax policy at fiscal events.”

Some of the most sought-after cars from two decades ago have become virtually worthless and are heading for the scrapheap due to prohibitive tax costs, according to industry experts. Vehicles emitting more than 225g of CO2 per kilometre face substantial Vehicle Excise Duty (VED) charges – with those producing 201-225g/km paying £430, 226-255g/km £735 and over 255g/km £750.

These bands are set to increase, with the £735 rate rising to £760 and the £750 over 255g/km bracket expected to reach £790 from April 2026.

According to The Telegraph, it’s not merely luxury SUVs with powerful engines facing the brunt – everyday family motors such as Ford Mondeos, Saabs, VW Golfs and Vauxhall Zafiras are equally affected. Motorists are said to be sending their vehicles to the scrapheap owing to annual tax bills that can match the vehicle’s actual value.

The Guardian highlighted that manufacturing a medium-sized new vehicle can produce upwards of 17 tonnes of CO2e – roughly equivalent to three years of typical household gas and electricity usage in the UK. Mike Berners-Lee and Duncan Clark observed: “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.”

10 popular models caught in the VED trap

• Model Annual // road tax rate
• Saab 900 Convertible £735
• Land Rover Freelander 2 i6 £760
• Audi TT 1.8T £735
• Ford Galaxy 2.3 £735
• Jaguar X-Type 2.0-litre Auto £735
• Subaru Forester 2.5 XT £735
• Volkswagen Golf R32 £760
• Chrysler PT Cruiser £735
• Vauxhall Zafira VXR £735
• Ford Mondeo V6 £735

New 2026-2027 car tax rates for vehicles registered between March 1, 2001, and April 1, 2017

• Up to 100g/km – Remains at £20
• Between 101 and 110g/km – Remains at £20
• Between 111 and 120g/km – Remains at £35
• Between 121 and 130g/km – Rising from £165 to £170
• Between 131 and 140g/km – Rising from £195 to £200
• Between 141 and 150g/km – Rising from £215 to £225
• Between 151 and 165g/km – Rising from £265 to £275
• Between 166 and 175g/km – Rising from £315 to £325
• Between 176 and 185g/km – Rising from £345 to £360
• Between 186 and 200g/km – Rising from £395 to £410
• Between 201 and 225g/km – Rising from £430 to £445
• Between 226 and 255g/km – Rising from £735 to £760
• Over 255g/km – Rising from £750 to £790

Industry specialists warn this is rendering particular models virtually valueless, resulting in them being either scrapped or shipped abroad to nations where purchasers eagerly snap up these bargain vehicles, many of which are approaching classic status. Whilst those driving exotic supercars and V8-powered 4x4s may struggle to garner sympathy over steep tax charges, the regulations equally impact considerably more ordinary performance vehicles including the Audi TT 1.8, Vauxhall Zafira VXR, higher-specification Ford Mondeo variants, and even certain Volkswagen Golf models.

Motorists seeking the enhanced traction of four-wheel-drive systems might consider a Land Rover Freelander or Subaru Forester as sensible alternatives to bulkier 4x4s, offering better economy. However, particular versions still fall within the highest tax brackets, potentially exceeding £800 annually.

Wayne Lamport, who operates Stone Cold Classics in Kent—a dealership specialising predominantly in vehicles from this period—explained to the Telegraph: “We have to be very careful when we buy stock which is 2006 or more recent. Cars such as a Jaguar X-Type are great, but who wants to pay more than £700 for the annual tax? It doesn’t take many years of ownership to spend the value of the car.

“One example is the Chrysler PT Cruiser. A lot of people love them and think it will be a novelty, but they go off the idea when they realise the annual cost of taxing it. A lot of these cars are virtually unsellable.”

To view and back the petition and view the full response click here.