Certain drivers will be completely exempt from new Vehicle Excise Duty (VED) car tax increases, according to the DVLA. Classic car owners or disabled motorists will not have to pay fees and will dodge hefty rises hitting all other motorists from this Spring.
Up until now, electric cars have enjoyed VED tax exemptions but will no longer enjoy the benefit from April 1. EVs will be moved onto the standard £195 VED fee from the second year on the roads with many also forced to pay an additional £425 Expensive Car Supplement (ECS) charge. However, historic vehicles and those belonging to disabled road users will still enjoy the free pass for the next 12 months.
Classic car tax exemption
Historic vehicle tax exemption rules mean vehicles first registered over 40 years ago will not need to pay VED fees. This is done on a rolling 40-year basis with models first registered before January 1, 1985 not liable for free from April.
The DVLA said: “You must apply for a vehicle tax exemption to stop paying vehicle tax. This is sometimes called putting a vehicle into the ‘historic tax class’.”
Despite this, road users must still make sure their car is legally taxed to avoid being hit with an £80 fine.
However, cars registered just after this date will still have to pay with VED charges calculated on the size of a car’s engine.
Disabled drivers exemption
Motorists can claim disability exemption when applying for vehicle tax with successful candidates not required to pay VED fees.
The tax-exempt vehicle must only be for the use of the disabled person meaning family members cannot take advantage of the benefit for other reasons. However, officials warn the exemption can only be used on one vehicle at a time.
This means individuals with more than one vehicle will have to decide which one can enjoy the benefit.
The DVLA added: “Vehicles (apart from ambulances) used by organisations providing transport for disabled people are exempt.”
HM Revenue and Customs (HMRC) previously warned the new tax rules would have an impact on almost all drivers.
HMRC said: “This measure will impact on motorists owning a car, van or motorcycle or using a motorcycle trade licence. The increase in Vehicle Excise Duty rates is in line with Retail Price Index meaning rates will remain unchanged in real terms for vehicle owners.
“The measure is not expected to impact on family formation, stability or breakdown.”
