Elderly drivers and those receiving specific benefits could save hundreds or even thousands of pounds as changes to Vehicle Excise Duty (VED) are introduced in April. With the government raising VED rates to reflect inflation, some drivers may still qualify for exemptions or reductions, softening the financial impact of these reforms.
The planned changes aim to incentivise a shift towards zero-emission vehicles by increasing first-year tax rates for new petrol and diesel cars. However, eligible motorists can avoid these charges altogether by meeting certain criteria or benefiting from discounted rates.
Exemptions for Elderly and Disabled Drivers
Elderly and disabled drivers receiving particular benefits may qualify for full exemptions on car tax, offering significant financial relief. To be eligible, the vehicle must be registered in their name or a nominated driver’s name and must only be used for personal purposes.
Drivers can apply for an exemption if they receive one of the following:
- Higher rate mobility component of Disability Living Allowance (DLA)
- Enhanced rate mobility component of Personal Independence Payment (PIP)
- Enhanced rate mobility component of Adult Disability Payment (ADP)
- War Pensioners’ Mobility Supplement
- Armed Forces Independence Payment
To claim the exemption, eligible individuals must apply through a Post Office branch when taxing a vehicle for the first time. The exemption is limited to one vehicle per claimant.
For those who do not qualify for full exemption but receive the standard rate mobility component of PIP or ADP, a 50% reduction in VED is available. Claimants must provide specific documents, including benefit award letters, the vehicle’s log book (V5C), proof of current MOT, and a completed V10 form.
Rising Tax Rates for High-Emission Vehicles
All VED rates will rise as a result of the impending reforms, with high-emission gasoline and diesel vehicles being specifically targeted. Drivers buying new cars with CO2 emissions over 255 g/km starting in April 2025 will pay a first-year tax rate of £5,490, which is almost twice as much as the present rate of £2,745.
New owners of electric cars will only pay £10 in their first year of ownership, and the tax rates for zero-emission vehicles will continue to be far lower. With rates set at £110 and £130, respectively, cars that emit between 1 and 50 g/km and 51 and 75 g/km of CO2 will likewise see relatively moderate hikes.
This change demonstrates the government’s larger dedication to cutting emissions and encouraging environmentally friendly transportation. Critics counter that the modifications would unfairly impact older drivers who depend on gasoline or diesel cars and those who are unable to switch to electric vehicles.
Drivers are encouraged to verify if they qualify for exemptions or lower rates as the April deadline draws near in order to save needless expenses.
