Nearly 50,000 Drivers Want Road Tax Cut In Half On Older Cars. The Government Has Already Said No

A Parliament petition calling for a 50% reduction in Vehicle Excise Duty for cars aged 20 to 39 years has passed 50,000 signatures and is still climbing. The proposal would create a new “Transition to Historic” tax bracket, offering a sliding discount for vehicles that fall between the current 40-year historic exemption and full-rate VED. For owners of the highest-taxed older cars, it would mean a saving of up to £395 per year.

The Treasury has already responded, and the answer was blunt. “The Government has no plans to reduce Vehicle Excise Duty liabilities for vehicles aged 20 to 39 years,” HM Treasury said. “The Government keeps all taxes under review, and the Chancellor makes decisions at fiscal events.”

That rejection has not slowed the campaign. The petition needs 100,000 signatures to trigger a debate in Parliament and has until early August to get there. At its current pace, it has a realistic chance of crossing that line.

What The Petition Is Asking For

Under the current system, cars that reach 40 years old qualify for a rolling VED exemption and pay nothing. Cars below that threshold pay the full rate, regardless of whether they are 5 years old or 35. The petition argues that the jump from full tax to zero creates a perverse incentive, with owners of older vehicles facing annual bills that make it harder to justify keeping them on the road.

The proposed fix is a 50% discount on VED for all vehicles aged between 20 and 39. The petition, started by motoring enthusiast Heitor Mazzotti, frames it as both an environmental and an economic argument.

“Manufacturing a new car creates massive carbon debt,” the petition states. “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.”

What It Would Actually Save You

The savings depend on when your car was registered and how much you currently pay.

For cars registered between March 2001 and March 2017, VED is charged across 13 bands based on CO2 emissions. The lowest band (Band A) currently costs £20 per year, while the highest (Band M, for cars producing over 255g/km of CO2) costs £790 per year. A 50% discount on Band M would cut the annual bill to £395, saving the owner the same amount every year.

For cars registered before March 2001, VED is a flat rate based on engine size. Engines at or below 1,549cc pay £230 per year. Anything above that pays £375. A 50% discount would mean savings of £115 and £187.50 respectively.

The biggest beneficiaries would be owners of higher-emission cars from the 2001 to 2017 era, many of which are now between 9 and 25 years old. These include popular models like early Range Rover Sports, BMW X5s, Mercedes M-Class SUVs and performance saloons that were sold in large numbers but now carry annual VED bills of £400 to £790.

The Environmental Argument

The petition’s core claim, that keeping an existing car on the road is often greener than building a replacement, is not without support. Manufacturing a new car generates a significant carbon footprint before it turns a single wheel, with estimates ranging from 6 to 35 tonnes of CO2 depending on the vehicle type and whether it is petrol, diesel or electric.

For a low-mileage older car that is well maintained and driven sparingly, the total lifetime emissions can be lower than buying new, particularly if the replacement vehicle is manufactured overseas and shipped to the UK. The petition argues that the current VED structure ignores this entirely, treating a 25-year-old car driven 3,000 miles a year the same as a brand-new vehicle of the same emissions rating.

Critics of the proposal point out that older, higher-emission vehicles contribute disproportionately to local air quality problems regardless of their annual mileage, and that any tax discount could be seen as encouraging drivers to hold onto polluting cars for longer.

Why The Government Said No

The Treasury’s response was brief and gave no indication that the policy is under active consideration. That is not unusual for petition responses, which tend to restate existing policy rather than engage with the specifics of the proposal.

However, the timing makes any VED discount politically difficult. The standard rate of VED has just risen to £200 for the 2026/27 tax year, electric vehicles are being brought into the system for the first time, and a new per-mile charge for EVs is planned from 2028. The direction of travel is clearly towards raising more revenue from motorists, not less. Introducing a discount for older vehicles would run directly against that strategy.

There is also the question of how many vehicles would qualify. Cars aged 20 to 39 make up a substantial portion of the UK’s vehicle fleet, and a blanket 50% reduction across that age range would represent a significant loss of VED revenue for the Treasury.

What Happens Next

The petition remains open until August 2026. If it reaches 100,000 signatures, the Petitions Committee is obliged to consider scheduling a debate in the House of Commons, though a debate does not guarantee any change in policy.

For owners of older cars who want to add their name, the petition is live on the UK Parliament petitions website. Whether or not it reaches the debate threshold, the strength of support so far has made it clear that a significant number of drivers feel the current system penalises them for keeping older vehicles on the road rather than scrapping them.

Sources:

• UK Parliament petition 756814, reduce VED by 50% for vehicles aged 20 to 39
• GOV.UK, vehicle tax rates for cars registered on or after 1 March 2001