VED (VEHICLE EXCISE DUTY) EXEMPTIONS & REDUCTIONS
(VED is commonly referred to as “Vehicle Tax” or Road Tax)
Many people with disabilities are eligible for exemption from VED.
You can apply for exemption from paying vehicle tax if you get the:
- higher rate mobility component of Disability Living Allowance (DLA)
- enhanced rate mobility component of Personal Independence Payment (PIP)
- War Pensioner’s Mobility Supplement
The vehicle must be registered in the disabled person’s name or their nominated driver’s name. It must only be used for the disabled person’s personal needs. It can’t be used by the nominated driver for their own personal use.
The vehicle tax exemption can be used on any type of taxable vehicle but you can only use it to tax one vehicle at a time. Therefore if you own more than one vehicle it makes sense to use the exemption on whichever of your vehicles is the most expensive to tax, that way you will save you the most money.
NB. VED exemption has absolutely nothing to do with whether or not the vehicle is adapted to suit the needs of a disabled person.
How to claim your free vehicle tax:
If you are eligible for VED exemption you must still apply for the vehicle tax, but instead of paying the fee you just need to supply proof of your exempt status.
You claim the exemption when you apply for vehicle tax. You will need:
- your exemption certificate serial number
- the surname, date of birth and National Insurance number of the exemption certificate holder
Your exemption certificate must be one of the following:
- certificate of entitlement for DLA
- certificate of entitlement for PIP (on the last page of your award letter)
- an annual certificate of entitlement
VEHICLE TAX REDUCTION
You can get a 50% reduction in vehicle tax if you get the PIP standard rate mobility component. (You can’t get a reduction if you are getting the DLA lower rate mobility component)
How to claim:
Send all of the following to DVLA Swansea:
- your statement of entitlement (it’s at the end of your PIP award letter)
- the vehicle registration certificate (V5C)
- a V10 form
- an original MOT or GVT certificate (if your vehicle needs one)
- a cheque or payable order (made out to ‘DVLA, Swansea’) for 50% of the full rate of car tax for the vehicle
For further information see: http://www.gov.uk/vehicle-exempt-from-vehicle-tax