St Ives, Cambs -- (SBWIRE) -- 04/17/2015 -- Those precious classic cars are soon to be tax-free. Classic car collectors and enthusiasts are excited about this. Lancaster Insurance in UK gives some good news here.

A few weeks ago, Budget Chancellor George Osborne announced that the undulating tax exemption for classic vehicles will carry on. The so-called Vehicle Excise Duty will be applicable for all classic cars or vehicles built in 1975 or later.

The ongoing system commenced again last year after being revamped with a cut-off date of 40 years revised every year every 1st of April. Just imagine how this system would benefit owners of classic cars.

In the said tax exemption rule, the date of manufacture would be used (and not the date the classic car was first registered). This means that classic cars built and registered prior to January 1975 are eligible to be tax-free. Please note that it is important to amend V5C (Log Book) from Private/Light Goods to historic.

For cars built prior to January 1975 but were registered after this year can still follow the same process. However, the classic car owner should present a proof stating the original date of manufacture from a valid source like classic car clubs who have records of register dates associated with the chassis numbers that were made.

Apart from being tax-free, classic car owners should also be mindful classic car insurance eligibility in order to save on costs in maintaining a classic car. Take note of the eligibility requirements for classic car insurance:

1. The car must be 10 years of older. But it would depend on the classic car insurance companies. Some would give classic car insurance to classic cars that are five years or more, and some would even allow brand new classic cars to be insured. Lancaster Insurance, a trusted classic car insurance provider in the UK provides flexible and cost-effective insurance plans.

2. The insurer decides on the minimum worth of the classic car.

3. The classic car must be a second car. Anyone who used a vintage car on a regular basis is not eligible for a classic car insurance. Classic car insurers base the insurance limitation on the mileage allowed per year and in the mode the mileage is used. With Lancaster Insurance for example, a classic car used for limited mileage receives a big discount. A minimum of 1,500 miles per year is permitted though, but discount decreases the more miles being covered.

4. Classic cars being remodeled for car rallies or other sporting activities are not eligible for classic car insurance.

5. Classic car insurance depends on the make and model.

6. The classic car must not have any record of being involved in any criminal activity in order to qualify for an insurance.

For classic car collectors and enthusiasts, it's all worth the investment, especially if they are given the chance to save costs on something that they can re-invest in more of their vintage collections.

About Lancaster Insurance
Lancaster Insurance has access to competitive classic car insurance and vintage car insurance schemes in the UK. No matter which classic car or vintage car one owns, rest assured that Lancaster has the same passion for classics being endeavored to get you the best price. Their dedication to classics is also shown through their sponsorship on the Lancaster Insurance Classic Motor Show.