VEHICLE EXCISE DUTY (VED) – EXEMPTIONS & REDUCTIONS

03 January 2026

(VED is commonly referred to as ‘Vehicle Tax’ or ‘Road Tax’)

VED (EXEMPTION):

Many people with disabilities are eligible for full exemption from VED.

A vehicle tax exemption can be used on any type of taxable vehicle but you can only use it on one vehicle.  If you own more than one vehicle it makes sense to use the exemption on whichever of your vehicles would be the most expensive to tax, that way you will maximise the saving.

1. The vehicle does not need to be adapted for you to qualify for the VED exemption.

Eligibility:
You can apply for exemption from paying vehicle tax if you get one of these benefits:

• Disability Living Allowance (DLA)
• Personal Independence Payment (PIP)
• Child Disability Payment (CDP)
• Adult Disability Payment (ADP)
• Scottish Adult Disability Living Allowance (SADLA)
• Armed Forces Independence Payment (AFIP)
• War Pensioners Mobility Supplement (WPMS)
• Vehicles registered with a Northern Ireland (NI) address also need an insurance certificate that is valid on the day the tax starts.

Using the vehicle in the Disabled tax class:

The vehicle must be registered in the disabled person’s name or their nominated driver’s name.

The vehicle must either be used by the disabled person or by someone who only uses their vehicle to help the disabled person. Eg. to collect prescriptions or go shopping for the disabled person or when acting as a driver for the disabled person.

How to claim your vehicle tax exemption:
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.

If you’re buying a brand-new vehicle speak to the dealership and they should sort out the change of taxation class for you.

If you’re applying for the first time on a used vehicle, when you first apply for tax exemption you must also change the vehicle’s tax class to ‘Disabled’ at a Post Office branch that deals with vehicle tax.

You need to take the following documents:

• The V5C registration certificate (logbook) or the green New Keeper slip for the vehicle
• A completed ‘Application for a vehicle registration certificate’ form (V62).
• A Certificate of Entitlement to DLA, PIP, CDP, ADP, SADLA, AFIP or WPMS (write the registration number of the vehicle in the top right-hand corner).
• Proof of a valid MOT (electronic copies are accepted) or a Goods Vehicle Test (GVT) certificate (the MOT or GVT certificate must be valid on the date the tax starts).
• If your vehicle had an MOT test in Northern Ireland, a valid test certificate must be produced.

Renewing the Tax Exemption:

Once the tax class of the vehicle is shown as disabled, you can use the V11 vehicle tax

reminder or the V5C when the exemption is due for renewal. This can be done in the following ways:

• Online at www.gov.uk/vehicle-tax (not available for AFIP customers).
• By phone on 0300 123 4321 (not available for AFIP customers).
• At a Post Office branch that deals with vehicle tax.

Renewal online is definitely the quickest and easiest way of doing it.

For further information, go to www.gov.uk/vehicle-tax

VEHICLE TAX 50% REDUCTION

You can claim a 50% reduction in vehicle tax if you get the ‘PIP standard rate mobility component.’

1. People receiving the lower rate mobility component of DLA do not qualify for this discount.

How to claim:
Send all of the following to DVLA Swansea by post:

• your statement of entitlement (it’s at the end of your PIP award letter).
• the V5C vehicle registration certificate.
• 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.

1. I recommend you scan or photograph your Statement of Entitlement, V5C, MOT and/or GVT, before sending the original documents off.

Send it all to:

DVLA
Swansea
SA99 1DZ

The DVLA should return all of your documents to you but it’s worth keeping copies just in case anything goes astray.

For further information see: http://www.gov.uk/vehicle-exempt-from-vehicle-tax

If you have found this information useful, you might find membership of the NABD to be of even greater benefit.

Find out how cheap and easy it is for to become a member of this wonderful and supportive biker family for just £2.00 per month: https://nabd.org.uk/join/

Rick Hulse
NABD Chairman