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
About Car & classic
Launched in 2005, Car & Classic is Europe’s number one classic and niche vehicle website* with circa 4m monthly visitors. With over 30,000 cars listed at any one point through the private and trade enthusiast sales portal, Car & Classic also runs a stand-alone auction site, which was launched in July 2020.
The auction platform itself has recently become the largest of its kind in the UK and is rapidly expanding into Europe. Car & Classic’s buyers and sellers benefit from transparent, journalist-written auction descriptions and is the only auction in Europe to offer secure payments via Escrow to take the risk and pain away from vehicle transactions.
You can find the latest car auctions on www.carandclassic.com/auctions where the team specialises in enthusiast-owned cars, from the latest modern classics to pre-war and veteran classics, barn finds and concours-winning examples.
Car & Classic has over 2,000 reviews on Trustpilot and is rated ‘excellent’: https://uk.trustpilot.com/review/www.carandclassic.com
*Data validated by unique visitors to the website compared to competitors.
