Vehicles exempt from Vehicle Excise Duty
Vehicle Excise Duty (VED), also commonly referred to as vehicle tax, is an annual tax levied on owners of most cars, vans, motorcycles, and holders of motorcycle trade licences.
There are certain VED exemptions and discounts for people who suffer from various mobility impairments. In addition, alternative fuel vehicles receive a £10 reduction on vehicle tax rates.
The full list of vehicles exempt from vehicle tax are as follows:
- Vehicles used by a disabled person – an application should be made by eligible users for a disability exemption when they apply for vehicle tax. The exemption is removed if the disabled person no longer uses the vehicle.
- Disabled passenger vehicles – Vehicles (apart from ambulances) used by organisations providing transport for disabled people are exempt.
- Mobility scooters and powered wheelchairs – The law calls these ‘invalid carriages’. They must have a maximum speed of 8mph on the road and be fitted with a device limiting them to 4mph on footways, to be exempt.
- Historic vehicles made before 1 January 1981.
- Electric vehicles – The electricity must come from an external source, or an electric storage battery not connected to any source of power when the vehicle is moving to be exempt.
- Mowing machines
- Steam vehicles
- Vehicles used for agriculture, horticulture and forestry – This includes tractors, agricultural engines and light agricultural vehicles used off-road. It also includes ‘limited use’ vehicles used for short journeys (not more than 1.5 kilometres) on the public road between land that’s occupied by the same person.
Looking to get a better understanding of vehicle taxes for your business? Read our other article on Vehicle benefit charges.