New UK Vehicle Law Grants Refugees Major Tax and Licence Benefits – Are You Affected?

The UK government has quietly extended key vehicle exemptions for Ukrainian refugees, easing financial strain and simplifying mobility. A new rule adds months to their licence validity while also cutting car tax costs.

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New UK Vehicle Law Grants Refugees Major Tax and Licence Benefits – Are You Affected? | en.Econostrum.info - United Kingdom

Ukrainian refugees in the UK will benefit from extended vehicle tax exemptions and driving licence validity under new government measures. The initiative aims to ease financial pressures and simplify mobility for those who have fled the war, according to the Department for Transport (DfT).

The exemptions will allow eligible Ukrainians to continue using their original driving licences for up to 4.5 years from their arrival. Additionally, they will be exempt from paying Vehicle Excise Duty (VED) for a further 18 months. The move aligns with the recently introduced Ukraine Permission Extension Scheme, designed to support those displaced by Russia’s invasion.

Extended Vehicle Tax Exemption and Driving Licence Validity for Ukrainian Refugees

Under existing UK regulations, foreign nationals can use their original driving licences for a limited period before needing to exchange them for a UK licence. However, the latest update grants Ukrainians on specific visa schemes an extended right to drive in the UK without conversion. According to the DfT, this decision reduces administrative barriers and helps avoid “unnecessary costs” during their temporary stay.

The licence extension applies to those driving mopeds, motorcycles, and cars up to 3,500kg. This follows a July 2023 agreement between the UK and Ukraine that initially allowed Ukrainian refugees to drive for up to three years after obtaining residency. The recent extension adds another 18 months to this period.

The policy also provides a temporary VED exemption, which relieves Ukrainians from car tax payments. The measure aligns with the UK government’s broader strategy to support displaced individuals and facilitate their daily lives.

Future of Roads Minister Lilian Greenwood emphasised that these initiatives make it easier for refugees to access work and education, adding, “It’s important those in the UK who’ve fled Putin’s illegal invasion are able to get about with ease.”

Broader UK Initiatives to Support Ukraine

In addition to individual support measures, the UK has launched other initiatives to assist Ukraine, including vehicle donations. According to Transport for London (TfL), non-compliant vehicles from London’s Ultra Low Emission Zone (ULEZ) scrappage scheme are being sent to Ukraine for humanitarian aid.

The programme, introduced by London Mayor Sadiq Khan, allows drivers to donate scrapped vehicles in exchange for financial compensation. Motorists can receive up to £2,000 for cars, £1,000 for motorbikes, and £10,000 for wheelchair-accessible vehicles. The initiative not only provides Ukraine with essential transport but also contributes to reducing pollution in London.

According to official figures, approximately 208,900 Ukrainian nationals have benefited from UK visa schemes since the beginning of the conflict. So far, 33,000 have been granted an extension, ensuring continued residency and access to mobility support.

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