From 2025, some drivers over 70 in the UK may be exempt from car tax changes if they receive specific disability benefits. Learn about VED exemptions.
New Vehicle Excise Duty (VED) car tax changes are set to take effect from Spring 2025 in the UK. While these updates will impact most petrol, diesel, and electric car owners, certain drivers over 70 may be exempt. This article provides a detailed overview of the upcoming changes and clarifies who qualifies for an exemption.
Upcoming VED Changes
From April 1, 2025, standard VED charges are slated to increase with Retail Price Index (RPI) inflation. This could potentially double the fees for new car models. Electric vehicle owners will also be affected, as the exemption for EVs will end, introducing new charges.
Exemptions for Drivers with Disabilities
According to GOV.UK, exemptions from VED are available for motorists with disabilities who receive specific benefits. These include:
- The higher rate mobility component of Disability Living Allowance (DLA)
- Personal Independence Payment (PIP)
- Adult Disability Payment (ADP)
- Child Disability Payment
- A War Pensioners’ Mobility Supplement
- Armed Forces Independence Payment
Motorway.co.uk also notes that vehicles used by disabled individuals or organizations transporting disabled people can claim a disability exemption from road tax. It’s important to note that only one vehicle per disabled person qualifies for this exemption.
Age and Medical Conditions
While age alone does not guarantee a VED exemption, DVLA data from 2023 indicates that drivers over 70 have the highest number of medical conditions affecting their cases. These medical conditions might qualify some individuals for disability-related benefits, thus making them eligible for VED exemptions.
Background on Vehicle Excise Duty (VED)
Vehicle Excise Duty, often referred to as car tax or road tax, is an annual tax levied on most vehicles used on public roads in the UK. The amount of VED payable depends on various factors, including the vehicle’s age, fuel type, and CO2 emissions. The purpose of VED is to raise revenue for government spending on transport infrastructure and environmental initiatives.
Other Changes in 2025
It’s important to be aware of other motoring-related changes coming in 2025. These include the nationwide Fuel Finder scheme, requiring petrol stations to share real-time fuel prices. Additionally, HGV operators in Greater London will need safety permits under the Direct Vision Standard from May 4. Scotland also plans to implement a nationwide 20mph speed limit in urban areas during 2025.
VED Increases for Cars Registered Between 2001 and 2017
Owners of cars registered between 2001 and 2017 may also face Vehicle Excise Duty (VED) increases this spring, potentially reaching £600. Cars manufactured during this period are taxed based on their emission levels, leading to variable costs depending on the amount of pollution they release. More eco-friendly vehicles could face a minimal charge, while highly polluting models could see charges exceeding £600. These VED fees are adjusted annually based on the Retail Price Index (RPI) inflation.
Conclusion
While the upcoming car tax changes in 2025 will affect many drivers, some individuals over 70 may be exempt if they receive specific disability benefits. It is essential to check eligibility criteria on the GOV.UK website or consult with a professional advisor to determine individual circumstances. Staying informed about these changes can help drivers plan accordingly and avoid any unexpected financial burdens.
Sources: https://www.gbnews.com/lifestyle/cars/drivers-weeks-rachel-reeves-tax-hikes-driving-laws-april
https://www.derbytelegraph.co.uk/news/motoring/thousands-drivers-over-70-exempt-9885691
https://www.devonlive.com/news/uk-world-news/cars-number-plates-face-600-9863592