Car tax updates will see motorists pay for each mile they travel instead of a flat fee based on total emissions. The changes are being considered by the Chancellor after an estimated £40billion could be lost through the switch to electric vehicles.
This would be through a loss of fuel duty revenue and vehicle excise duty charges not paid by modern fully electric vehicles.
A pay per mile scheme would allow the government to introduce some form of taxation to electric car owners, punishing those who make longer journeys.
However, experts at classic car insurance firm Hagerty says the general assumption is that classic cars will be exempt from the new charges in a major win for owners.
Classic vehicles registered before 1980 are exempt from road tax and the requirement to have an annual MOT test.
“But we are very keen to be…