These vehicles will be exempt from paying car tax fees from April due to road tax changes
Car tax must be applied for by every single vehicle owner but some will receive payment exemptions by the DVLA. These exemptions will soon come into effect for all fully-electric vehicles under new tax changes, while vehicles built before this one date will also not need to pay the bill.
- Car tax could cause your insurance to be invalidated
Cars built before January 1979
According to GOV.UK motorists can apply to stop paying tehri car tax charges if their vehicles were built before 1 January 1979.
Motorists who do not know when their vehicle was built can still apply for an exemption if a car was registered before 8 January 1979.
This is part of the givenrmet’s histoirtic vehile tax exemption which changes every year.
The measure is part of a 40 year rolling VED rate exemption introduced by the government in 2014.
On 1 April each year vehicles constructed more than 40 years before the 1 January that year will automatically be exempt from paying the charges.
This means exemptions will apply to vehicles built before January 1980 will also apply within weeks.
However, not all historic vehicles will get to take advantage of the deal as some exceptions to the rule are in place.
A classic car will still need to pay the charges if the vehicle is used commercially for business reasons or as a hire car.
If the classic vehicle is used as a taxi service or paying customers, owners will still need to pay the charges.
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Changes in the Chancellor’s 2020 budget will completely slash VED road tax rates for owners of fully-electric vehicles.
Currently, electric cars with zero emissions are exempt from paying car tax as long as their vehicle is valued below £40,000.
However, new budget changes will see charges for higher valued cars completely scrapped bringing unanimous tax breaks to all EV owners.
Chancellor Rishi Sunak’s budget said: ““From 1 April 2020, the government will exempt all ZEVs registered until 31 March 2025 from the VED ‘expensive car’ supplement.
- This added car tax charge will be scrapped
“The measure will incentivise the uptake of ZEVs to support the phasing out of petrol and diesel vehicles.”
The changes are set to save owners of expensive electric cars a total of £320 a year compared to those who own cheaper EV’s.
However, the budget has also revealed those with traditional petrol and diesel cars will likely see an increase in car tax rates.
This means electric car owners exempt from charges could save thousands of pounds on car tax alone.
Other car tax exemptions
According to GOV.UK vehicles which are used by organisations to provide transport for disabeld people are also exempt from the charges.
Motorists with a disability may not be required to pay any car tax charges but this is only available for those with some illnesses.
Disability exemption is available to those who receive the higher rate mobility component of Disability Living Allowance or receive the enhanced rate of Personal Independence Payments.
The vehicle must be registered in the diabled person’s name or that of a nominated driver to receive the exemption.
However, the car would only be licenced for the personal use of the disabled person.
Any steam powered cars or vehicles used for agriculture, horticulture and forestry use are also exempt from paying road tax.
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