Full list of everyone who qualifies for car tax exemption and big reduction in the UK

The exemption can save driver’s £100s a year on vehicle costs

People with disabilities may qualify for a vehicle tax exemption or a 50% reduction that could save them hundreds a year. Car tax is required for vehicle’s driving along British roads and the revenue generated is used by the UK government to fund highway construction and maintenance.

Last year the average road tax cost £195 a year but new tax increases could see that average fee rise this year.

There is a wide range of disability-related financial support, including benefits, payments, grants and concessions. For the biggest stories in Wales first sign up to our daily newsletter here

The DWP has confirmed the list of people that are eligible for a car tax exemption to aid disabled individuals and give them financial support.

If you are disabled you can apply for multiple transport benefits including exemption from paying vehicle tax and parking benefits with a Blue Badge.

How to apply for a Blue Badge

Unlike England and Scotland, it is free to get a Blue Badge in Wales if you are eligible. A person does not have to drive to apply for a Blue Badge as it can be used for any car when that person is a passenger or driver.

An individual may be eligible for a badge, without the need for an assessment, if they receive the following disability benefits or have sight impairment:

• Personal Independence Payment (PIP)
• Higher rate mobility component of Disability Living Allowance
• Armed Forces Compensation Scheme
• War Pensioner’s Mobility Supplement

In some circumstances a person could be eligible if they do not receive any of the benefits. These include:

• A person over two years old who has a permanent and substantial disability making them unable to walk or have difficulty walking
• A person who is unable to plan or follow any journey without the help of someone else
• A person, who has a severe disability in both arms, has considerable difficulty, or is unable, to operate all or some types of parking meter
• Child under the age of three who has a medical condition that means: they must always be accompanied by bulky medical equipment which cannot be carried around with the child without difficulty or they must always be near a vehicle to access life saving medical treatment for that condition or they can be taken quickly in the vehicle to a place where such treatment can be given.

An individual can also apply for a temporary 12 month badge if they are recovering from, or awaiting treatment for serious illnesses or injuries.

Vehicle tax exemption eligibility

If you are eligible you can get a vehicle tax exemption on a car that is registered in the disabled person’s name or their nominated driver’s name.

The car has to be used for the personal needs of a disabled person not the nominated driver.

You can apply for exemption from paying vehicle tax if you receive:

• 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)
• higher rate mobility component of Child Disability Payment
• War Pensioners’ Mobility Supplement
• Armed Forces Independence Payment

You claim the exemption when you apply for vehicle tax.

Vehicle tax reduction eligibility

If you are not eligible for a complete tax exemption you may be eligible for a 50% tax reduction.

You can get the reduction if you get:

• PIP standard rate mobility component
• ADP standard rate mobility component

You cannot get a reduction for getting the DLA lower rate mobility component.