Tax exemption for classic cars. Fixed at 40 years on a rolling basis from 1 April 2017 – so ‘from 1 April each year vehicles constructed more than 40 years before the 1 January of that year will automatically be exempt from paying VED.’
NB! Although the tax year ‘rolls over’ on 1 April each year, vehicles need to have been built before 1 January (not 1 April) 40 years previously, in order to qualify for free VED, so they technically need to be 40 years and three months old before they can qualify. (This is a continuation of policy introduced in 2014.)
VED increases. From 1 April 2016, VED rates for cars and vans will increase in line with the Retail Prices Index (RPI).
Fuel duty. This remains unchanged at 57.95p per litre.
Comparative fuel price signs. These will be trialled on the M5 between Bristol and Exeter to ‘drive fuel price competition’.
Road repair. £50 million has been allocated to repair ‘nearly a million’ potholes in England. An extra £130 million has been allocated to repair the roads and bridges damaged by storms Desmond and Eva.
Driverless vehicles. During the summer of 2016 the government will look into ‘sweeping away regulatory barriers […] to enable autonomous vehicles on England’s major roads’.
The full 2016 Budget can be found on the government’s website.
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