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Motor Vehicles: Tax Allowances

Question for Treasury

UIN 126697, tabled on 18 January 2023

To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of (a) reducing and (b) removing the vehicle tax on a vehicle used to assist a person with disabilities.

Answered on

25 January 2023

The Government is absolutely committed to supporting disabled people and is determined that support should be focused on people who need it most. Individuals in receipt of the higher rate mobility component of Disability Living Allowance and its successor, Personal Independence Payment (PIP), qualify for a full exemption from Vehicle Excise Duty (VED). A fifty per cent reduction in VED is available to those in receipt of the PIP standard rate mobility component.

More information can be found on the Gov.UK website: https://www.gov.uk/financial-help-disabled/vehicles-and-transport.

As with all taxes, VED remains under review and any changes are considered and announced by the Chancellor.

Answered by

Treasury