Drivers may see car taxes slashed by half under DVLA incentives as millions could benefit
Drivers with PIP can get a reduction worth 50 per cent on their car tax
X/DVLA
Drivers could benefit from major car tax reductions in the UK through little-known Government initiatives aimed at offering a lifeline to the most vulnerable.
According to official documents, drivers can receive up to 50 per cent off car taxes if they receive certain benefits.
One of them is the Personal Independence Payment benefit which is given to drivers with long-term physical or mental health conditions or disabilities. This includes struggles with everyday tasks such as getting around because of the condition.
Drivers with certain cognitive or mental conditions can get help with mobility, such as working out a route and following it, physically moving around, leaving home and tax reductions.
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The Department for Work and Pensions will assess drivers to see if they qualify for reductions
X/DVLA
To qualify for reductions, the Department for Work and Pensions undergoes thorough tests of drivers to see if they are eligible for support.
The assessment looks at how difficult the person finds daily living and mobility tasks and will judge whether they can do it safely, for how long and often without the condition affecting this activity.
It will also assess whether the driver needs help with certain tasks from a person or through using extra equipment.
Motorists will need a letter or statement from the Department for Work and Pensions that shows their PIP rate and the dates associated with it which can be used to claim the mobility discount.
Drivers will also need their vehicle logbook, a V10 form, and evidence of a current MOT including the history or certificate.
Additional information for an original goods vehicle testing certificate may also be required as well as a cheque or payable order made out to DVLA Swansea if applying for discounts in Wales.
Motorists living in Northern Ireland will need an insurance certificate or cover note, with details of this on GOV.UK.
Drivers can also qualify for car tax exemptions if they have a benefit from the higher rate mobility component of Disability Living Allowance.
Motorists with the enhanced rate mobility component of Adult Disability Payment, higher rate mobility component of Child Disability Payment, War Pensioners’ Mobility Supplement and the Armed Forces Independence Payment are all eligible for car tax reductions.
The Government website details: “The vehicle must be registered in the disabled person’s name or their nominated driver’s name.
“It must only be used for the disabled person’s personal needs. It cannot be used by the nominated driver for their own personal use.”
Drivers can also only use an exemption on one vehicle at a time. If the driver has more than one vehicle, they will need to choose which one will be exempt from vehicle tax.
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Classic cars made before 1984 have VED exemptions
PAAside from benefit allowances, drivers with certain vehicles can be given tax reductions. Until April 2025, drivers of electric cars currently do not pay Vehicle Excise Duty, the main form of car tax in the UK.
But after this date, they will pay the same rate as both petrol and diesel counterparts in a bid to level the playing field.
Meanwhile, motorists with vehicles made before January 1, 1984, are exempt from paying VED due to special allowances.
Mobility vehicles and powered wheelchairs with a maximum speed of 8mph on the road are not charged by the Government.