Millions of UK drivers will continue to pay vehicle tax next year, but a select group of motorists will be entitled to a significant financial break, paying absolutely nothing. The standard annual rate for most cars registered after April 2017 is set at £195, yet exemptions exist that can reduce this bill to zero under specific conditions.
Who qualifies for a zero Vehicle Excise Duty rate?
Vehicle Excise Duty (VED) is a mandatory annual charge for most drivers, though payments can be spread monthly. However, the government has confirmed several clear exemptions where the rate drops to £0. Understanding these categories is crucial for drivers seeking legitimate savings.
Historic vehicles manufactured before 1 January 1985 are entirely exempt from car tax. This recognises their status as classic cars and their limited use on modern roads.
Disabled passenger vehicles operated by organisations dedicated to transporting disabled people are also free from the charge. This supports vital community transport services.
Furthermore, mobility vehicles and powered wheelchairs can be tax-free if they meet strict criteria. They must have a maximum road speed of 8mph and be fitted with a device limiting them to 4mph on footways.
Other ways to avoid the car tax charge
Outside of specific vehicle types, there is a universal method for any motorist to pause their tax payments. Declaring your vehicle with a Statutory Off Road Notification (SORN) means it is officially off the public highway. While you cannot legally drive it, you will not be liable for VED during this period.
This comes amid significant changes for electric vehicle (EV) owners. Previously exempt, EV drivers started paying VED for the first time earlier this year. From 2028, they will face an additional charge based on the number of miles they travel, marking a new phase in motoring taxation.
Budget decisions and future implications
The context for these exemptions follows Chancellor Rachel Reeves's recent Budget announcement. A key measure extended the 5p per litre cut in fuel duty, initially introduced in March 2022, until the end of August 2026. This provides ongoing relief at the pumps for all drivers alongside the targeted VED exemptions.
For motorists, checking eligibility for these exemptions could lead to substantial annual savings. Whether through owning a qualifying vehicle or using a SORN declaration during periods of non-use, understanding the rules is the first step towards reducing your motoring costs legally and effectively.
