Speculators' delight
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Sir,
From time to time valid criticism has appeared in your columns of those who acquire veteran and vintage cars not somuch to use and enjoy them as to realise a profit on their subsequent disposal.
Like many good paintings, many good veterans and vintage cars will only increase in value and they will, as a result, be sought by the wealthy largely as an investment. But, unlike paintings, their subsequent disposal at a profit will not attract Capital Gains Tax, a fact which must have led a number of people with substantial capital gains to invest in pre-1931 cars. Section 27(1) of the Finance Act 1965, provides that private cars (including vintage and veteran cars) which are “constructed or adapted for the carriage of passengers” and are not of a type “not commonly used as a private vehicle and unsuitable to be so used” will be exempt from charges under this Act; so if you seek additional grounds to support Motor Sport’s clairn that Parliament gives the motorist a raw deal, this provision of the 1965 Finance Act may be seen as a subtle hindrance to the average vintage car enthusiast’s desire to relieve the burdens of present-day motoring by enjoying, without undue expense, a taste of motoring as it was.
C.G. Masterman.
London S.E.11