From 8 April 2013 the Government will extend the current vehicle excise duty (VED) exemption for disabled drivers to individuals receiving the enhanced mobility Personal Independence Payment ('PIP'). The Government will also introduce a new 50 per cent VED discount for individuals receiving the standard mobility PIP.
The Government will extend the cut-off date from which classic vehicles are exempt from VED by one year so that, from 1 April 2014 a vehicle manufactured before 1 January 1974 (rather than 1 January 1973) will be exempt from paying VED.
Reduced Pollution Certificates (RPCs) VED discounts for Euro VI vehicles are due to expire on 31 December 2016. The Government will replace RPC VED discounts with grants for Euro IV-VI vehicles within the HGV Road User Levy scheme, from 1 April 2014 to 31 December 2016. Details of the grants will be announced shortly by the Department for Transport. The Government will end RPC VED discounts for Euro I-III vehicles within the HGV Road User Levy scheme from 1 April 2014, and for all other Euro I-III vehicles from 1 April 2016.
Additionally, to reduce tax administration costs, the Government will put off-the-road declarations onto an indefinite basis. The Government will also extend the grace period to 14 days, following the payment of tax, on the non-display of the tax disc in a vehicle.
Who will be affected?
Owners of vehicles that fall under the VED scheme.
The Government will extend the current VED exemption measures to benefit certain vehicle owners.