Did you know that If you’re receiving certain welfare benefits in the UK, you might be eligible for a reduction or even a complete exemption from vehicle tax. Many people aren’t aware that qualifying benefits such as Disability Living Allowance (DLA), Personal Independence Payment (PIP), or War Pensioners’ Mobility Supplement could entitle you to significant savings. Whether you’re a driver or someone who relies on a nominated driver, it’s worth checking—this little-known support could make a big difference to your annual motoring costs.

Vehicle Tax Exemption

Eligibility

You can apply for A 100% exemption from paying vehicle tax if you get:

– Higher rate mobility component of Disability Living Allowance (DLA)

– Enhanced rate mobility component of Personal Independence Payment (PIP)

– Enhanced rate mobility component of Adult Disability Payment (ADP)

– Scottish Adult Disability Living Allowance

– Higher rate mobility component of Child Disability Payment

– War Pensioners’ Mobility Supplement

– Armed Forces Independence Payment

The vehicle must be registered in the disabled person’s name or their nominated driver’s name.

How to claim

You claim the exemption when you apply for vehicle tax. If you’re claiming for a vehicle for the first time, you have to claim at a Post Office and you must change vehicle’s tax class. Please visit your local post office and speak to a member of staff about applying. You must do this every time you change your vehicle.

You can only use your exemption on one vehicle at a time. If you have more than one vehicle, you’ll need to choose which one will be exempt from vehicle tax.

Vehicle Tax Reduction

You can get a 50% reduction in vehicle tax if you get the:

– PIP standard rate mobility component

– ADP standard rate mobility component

The vehicle should be registered in the disabled person’s name or their nominated driver’s name. You cannot get a reduction for getting the DLA lower rate mobility component.

How To Claim

You must include the following with your application:

– A letter or statement from the Department for Work and Pensions that shows your PIP rate and the dates you’re getting it – if you’re getting PIP

– An ADP decision letter from Social Security Scotland that shows your mobility component rate and the dates you’re getting it – if you’re getting ADP

– The vehicle log book (V5C)

– A V10 form

– Evidence of a current MOT, if you need one – for example, a copy of your vehicle’s MOT history or your MOT certificate, if you have one

– An original goods vehicle testing (GVT) certificate, if you need one

– A cheque or payable order (made out to ‘DVLA, Swansea’) for 50% of the full rate of car tax for the vehicle

– An insurance certificate or cover note (if you live in Northern Ireland)

Do not send your PIP assessment or any other medical information with your application.

If you’ve just bought the vehicle and it’s not registered in your name yet, you’ll need to complete a V62 form and include the green ‘new keeper’ slip from the log book with your application.