6 Requirements for Car Tax Exemption

January 27, 2012

There are a few car tax exemption rules that allow you to avoid paying taxes on your vehicle in very specific circumstances. If you live in the United Kingdom and own a car you drive on a public road, you'll need to pay taxes on that vehicle according to the tax band your vehicle falls under. The vast majority of drivers will not be eligible for tax disc exemption, but it is still a good idea to familiarize yourself with the vehicles exempt from some or all of the standard emissions based taxes. This can be helpful when you're planning to buy a new vehicle, such as a classic car purchase or another type of unique vintage automobile.

Number 1 -- Vintage Vehicles

The most common type of tax exempt car are those that were registered before 1973. These vehicles are automatically designated as vintage vehicles and are not subject to any taxation whatsoever.

Number 2 -- Vehicles Owned by Disabled Drivers

There is a separate disabled tax class for any type of vehicle that is owned and operated primarily by someone who meets certain qualifications for disability. Your doctor and local driving authority can help to determine if you qualify. Generally, disabled owners pay reduced taxes for their vehicles.

Number 3 -- Electric Cars

Electrically powered cars tend to be better for the environment than many other types of vehicles due to their lower carbon dioxide emissions ratings. As an incentive to have people purchase and drive electrically powered cars instead of standard vehicles, the government offers a unique electric car tax bracket for these vehicles. This tax band requires you to pay much lower taxes for an electric car than you would for its comparable standard engine vehicle.

Number 4 -- Motorized Scooters and Other Smaller Vehicles

A number of vehicles that are smaller than standard cars will qualify for tax-exempt status based upon their size and low emissions ratings as well. These include wheelchairs, scooters of various types and several other vehicles. If you happen to use one of these vehicles as a primary means of transportation, speak with a local driving authority to determine whether or not your mode of transport is tax exempt or eligible for reduced taxes.

Number 5 -- Lawnmowers

Riding lawnmowers are taxed at a different rate from all other vehicles as well. You'll have to register your vehicle with the driving authority in your area and it will need to meet certain specifications for emissions as well. This type of vehicle is taxed much less than comparable cars.

Number 6 -- Agricultural and Forestry Vehicles

If you have a vehicle that you use solely for agricultural or forestry-related purposes, you will have to register the vehicle properly but you will not be subject to tax.

Ask a dealer or a specialist for additional advice about which vehicles are subject to reduced taxes or are exempt altogether.

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