Drivers may qualify for car tax exemption under certain conditions. Car tax, officially known as Vehicle Excise Duty, is typically an annual obligation, but payment options can be flexible. For cars registered after April 2017, the standard rate is £195 per year, excluding the first-year rate for new vehicles.
Cars registered between March 1, 2001, and March 31, 2017, have varied tax rates. Rates range from £20 annually for vehicles emitting up to 100g/km of CO2 to £760 yearly for those emitting over 255g/km of CO2. Individuals receiving specific disability benefits, such as PIP, may be eligible for up to 100% car tax exemption, with higher benefit rates granting total exemption and standard rates receiving a 50% discount. Only one vehicle can be tax-exempt at a time.
Organizations using vehicles to transport disabled individuals, excluding ambulances, are also exempt from car tax. Vehicles manufactured before January 1, 1985, are exempt from car tax. Mobility vehicles and powered wheelchairs, limited to 8mph on roads and 4mph on footways, are also exempt. If a vehicle is not in use and has a Statutory Off Road Notification (SORN), no road tax is required.
Recent announcements by Rachel Reeves in the Budget revealed that the 5p per litre fuel duty cut introduced in March 2022 will be extended until August 2026, gradually returning to 2022 levels by March 2027. A new charge of 3p per mile for electric vehicles and 1.5p per mile for plug-in hybrids is slated for April 2028. Fuel duty, separate from car tax, is included in pump prices with an additional 20% VAT charge.
Drivers should note that at Reach and its affiliates, cookies and device identifiers are used to enhance website experience, analyze usage patterns, and deliver personalized ads. Opt-out options are available, and continued use of the website implies acceptance of cookie usage as outlined in the Privacy Notice and Terms and Conditions.