- Yesterday’s budget announced an increase in Capital Gains Tax (CGT) on the sale of assets
- Classic cars are exempt from capital gains tax as ‘wasting assets’
- Car & Classic reminds people that classic cars are a tax-efficient investment post-budget
London, 31st October 2024 – In light of the recent Autumn 2024 Budget, Car & Classic announces that classic cars are exempt from the increase in Capital Gains Tax (CGT), a change that could make them an attractive, tax-efficient investment. With CGT rising from 10% to 18% for the lower rate and from 18% to 24% for the higher rate, this exemption offers an advantage for those considering classic car ownership.
While the CGT hike affects most investments, cars purchased for personal use, whether classic or modern, continue to be classified as ‘wasting assets’ and are therefore exempt.
Tom Wood, founder of Car & Classic, explains, “Unlike other assets, classic cars, while legally considered ‘wasting,’ often appreciate over time due to factors like restoration, rarity, and historical appeal. For collectors, the CGT exemption adds even more value to these vehicles.”
To qualify for the CGT exemption, cars must remain in their original ‘personal use’ configuration. Any modifications, such as for racing, could change their tax status.
With classic cars consistently appreciating in value and now confirmed as a CGT-free asset, Car & Classic invites the public to explore its vehicles for sale via auction on Europe’s largest classic and specialist marketplace https://www.carandclassic.com
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