Cars as art: tax implications of owning classic cars

Classic cars are more than simply transport for the owner; they can also reflect the individual’s personality. Many investors see classic cars as art keeping their vehicles on display and rarely using them for their intended purpose. The fact that they are also transport and specifically mechanical assets with a limited life means that they come with some tax exemptions and reliefs for owners.

With inflation high and increasing uncertainty in the markets many investors and collectors are turning their heads towards alternative investments. Hagerty’s UK price index tracks the changes in the classic car market with their gold index charting 30 of the most exclusive collectable cars. This index increased by 18.7% in the year to 1 December 2022 whereas the S&P500 index actually fell by 16.3% over the same period.

Shows such as the Goodwood Revival are an opportunity for car enthusiasts to view luxury...