For tax purposes a classic car is any car over 15 years old with a current value of more than £15,000 but whose list price was less than £15,000.
Usual company car rules tax you on a value based on list price and emissions.
If you have a company car that qualifies as a classic car under this definition, then the taxable benefit in kind is based on the market value at the end of that tax year instead of the list price when it came out of the factory.
And there is no longer a cap on this market value.
But there is a minimum value, for list price or market value, of £1,000 for these calculations.
Also, older cars may not have listed emissions; so there are alternative old rules using engine capacity for the calculations.
And for those vehicle with no recognised engine capacity there are alternative rules again – HMRC have tried to cover all bets.
This means that old cars, that are not officially classic cars, can be good company cars with very low taxable benefit and all the costs of upkeep can be paid for by the company.
You may not think of your car as an old car or even a classic car but for company car purposes a kit car is taxed based on the underlying vehicle not the finished product. Base your kit car on an old small engine vehicle and then enjoy the benefits as a company car.