However, classic cars are exempt from CGT and also the recent increase, as Tom Wood, founder of Car & Classic (www.carandclassic.com), 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.…