Who Is Exempt from
UK Car Tax?
Several categories of driver and vehicle qualify for free or reduced-cost car tax in the UK. Disability benefit recipients, military personnel, and owners of historic vehicles may pay nothing.
100% Free Car Tax: Who Qualifies
You can get free car tax (£0 VED) if you receive one of the following disability benefits at the qualifying rate:
Higher Rate Disability Living Allowance (DLA)
Mobility component, higher rate
The vehicle must be used by or for the disabled person.
Enhanced Rate Personal Independence Payment (PIP)
Mobility component, enhanced rate
Most common qualifying benefit for new claimants.
War Pensioners Mobility Supplement
Full supplement
For veterans receiving mobility supplement from the Ministry of Defence.
Armed Forces Independence Payment (AFIP)
Any amount
For seriously injured armed forces members.
50% Reduction: Standard Rate PIP Mobility
If you receive the standard rate of the PIP mobility component (not the enhanced rate), you qualify for a 50% reduction on your car tax. This means you pay half the standard rate.
At the 2026/27 standard rate of £200, you would pay £100 per year instead of £200. At the premium rate of £640, you would pay £320.
Motability Scheme
The Motability scheme allows disabled people receiving the higher rate DLA mobility component, enhanced rate PIP mobility component, AFIP, or WPMS to lease a brand new car, powered wheelchair, or scooter.
Car tax (VED) is included as part of the Motability lease at no additional cost. You do not need to apply for the exemption separately - it is arranged automatically by Motability.
Vehicle Type Exemptions
Historic Vehicles (40-year rule)
Cars built before 1 January 1986 are exempt. The 40-year cut-off rolls forward each year on 1 April. You still need to apply at the Post Office annually, but the cost is £0.
See full guideAgricultural Vehicles
Tractors, combine harvesters, and vehicles used solely for agricultural purposes are exempt. Must not be used on roads except for agricultural purposes.
Crown and Government Vehicles
Vehicles owned and used by the Crown (including police, fire, and ambulance services) are exempt from VED.
Electric Mobility Scooters
Mobility scooters and powered wheelchairs that meet the legal definition are exempt. They must not exceed 8 mph and must be used by a disabled person.
How to Apply for a Disability Car Tax Exemption
Apply at a Post Office
You cannot apply online for a disability car tax exemption. You must go to a Post Office that deals with vehicle tax.
Bring your documents
Take your V5C logbook (registration certificate), your disability benefit letter confirming you receive the qualifying benefit, and proof of identity. If you do not have a V5C, you can use the V5C/2 or V11 reminder.
Free tax is issued immediately
The Post Office will issue a tax disc (for record purposes) showing £0. You can drive away immediately. No payment is taken.
Renew annually
You must renew the exemption every year at the Post Office. DVLA will send a renewal reminder (V11) about one month before expiry. Even though it is free, you must renew to avoid the vehicle showing as untaxed on the DVLA system.
Nominated Drivers
A disabled person who receives the exemption does not have to drive the vehicle themselves. A nominated driver - such as a carer, partner, or family member - can drive the vehicle on their behalf. There is no limit on the number of people who can drive the exempt vehicle, as long as it is being used by or for the disabled person.
However, the exemption only applies when the vehicle is being used for the benefit of the disabled person. A nominated driver cannot use the vehicle for their own independent purposes and claim the exemption.