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That is correct and possible. However if pulled over it still has to meet MOT standards and C&U regs , it just doesn't have to go for the test NOT that is is exempt from complying.
 

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...because it was decided that it was 'too much red tape' to take a 'well maintained and rarely used vehicle ' for an MOT ONCE A YEAR. You CAN still take your car for MOT if you disagree with the exemption.
 
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