Drivers may qualify for an exemption from car tax under specific conditions. Car tax, officially known as Vehicle Excise Duty, is typically an annual obligation, with options available for spreading out payments. The standard rate for cars registered post-April 2017, excluding the first-year rate for new vehicles, stands at £195 per year.
Different car tax rates apply to vehicles registered between March 1, 2001, and March 31, 2017. Rates range from £20 annually for vehicles emitting up to 100g/km of CO2 to £760 per year for those emitting over 255g/km of CO2.
If you receive disability benefits like PIP, you could be eligible for up to 100% car tax exemption, especially if you are on higher benefit rates. Standard rate recipients may receive a 50% discount, with exemption limited to one vehicle at a time.
Organizational vehicles used to transport disabled individuals are also exempt from car tax, excluding ambulances. Vehicles manufactured before January 1, 1985, do not require car tax payment. Mobility vehicles and powered wheelchairs meeting specific criteria are also exempt.
For vehicles not in use, a Statutory Off Road Notification (SORN) can be applied, relieving the owner of road tax obligations. Recent announcements indicate changes in fuel duty rates and the introduction of mileage charges for electric and hybrid vehicles in the coming years. Fuel duty, distinct from car tax, is part of the pump price, subject to a 20% VAT charge.
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