The coalition government corrected a historic wrong in the April 2014 budget by reinstating the rolling tax exemption for classic cars, now set at 40 years.
It was announced last year that all cars manufactured before 1 January 1974 would be tax exempt from April 2014, but C&SC understands that this will now be a rolling exemption rather than a one-off compromise.
The previous 25-year cut off was canned when Tony Blair's Labour government came to power in 1997.
Austin Allegro, Reliant Robin and Ferrari GT4 owners will see their 1973 models exempted from VED this April, while some Mk1 Volkswagen Golfs, Lamborghini Countachs and Fiat 131s will be included from 2015. Popular models such as the Ford Escort Mk2 are also close to exemption.
Crucially, it is the date of manufacture that will determine eligibility rather than the date of registration, so many 1974 models will also qualify.
It was also announced that from 1 April it will be possible to pay for VED monthly, rather than in blocks of 6 or 12 months. In addition, paper tax discs are to be scrapped and any existing tax must be removed from a vehicle prior to its sale.