Around 1.3 million motorists with disabilities across the UK could be unnecessarily overpaying for vehicle tax by as much as 50 per cent, industry experts have warned.
Thousands of eligible drivers remain unaware that they could qualify for substantial reductions in their Vehicle Excise Duty.
Mike Thompson, COO at Leasing Options, explained that "when registering your vehicle tax, you may not realise you are eligible for a discount".
He detailed how applying these discounts could save drivers hundreds of pounds over the coming years, and it is particularly important given the annual hikes in car taxes announced at the Autumn Budget last year.
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Experts explained that drivers with certain disabilities can qualify for car tax exemptions and discounts
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The issue affects a significant portion of the UK’s disabled driving community, with many missing out on either partial or complete exemptions from road tax that could dramatically reduce their motoring costs.
The financial implications for affected motorists are substantial, Mr Thompson explained, with eligible drivers potentially losing hundreds of pounds each year through unnecessary payments.
Individuals with disabilities can access either a complete exemption from vehicle tax or a 50 per cent reduction, depending on their specific circumstances and the benefits they receive.
These savings accumulate significantly over time, particularly for those who have been unknowingly paying full rates for multiple years.
The lack of awareness about these entitlements means many disabled drivers continue to face higher motoring costs than necessary.
Mr Thompson emphasised that the application process for these reductions is straightforward, yet many eligible motorists remain uninformed about their rights to claim these substantial discounts when registering their vehicles.
Government regulations specify that disabled individuals can receive vehicle tax exemptions for a single vehicle, provided specific conditions are met.
The car must be registered in the name of either the person with the qualifying disability or their designated driver, and usage must be exclusively for the disabled person's personal requirements.
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Mr Thompson said: "The Government website states that individuals with disabilities may be eligible for a vehicle tax exemption for one vehicle.
"To qualify, the vehicle must be registered either in the person with the eligible disability's name or their nominated driver's name, and it must be used solely for this person's personal needs. It cannot be used by the nominated driver for their own personal use."
Recipients of several specific disability benefits automatically qualify for these vehicle tax reductions, the expert detailed.
This includes drivers receiving the higher rate mobility component of Disability Living Allowance or the enhanced rate mobility component of Personal Independence Payment who can access the exemption. Military veterans claiming War Pensioners' Mobility Supplement or Armed Forces Independence Payment can also qualify for reduced rates.
Drivers with certain disability allowances can be eligible for Vehicle Excise Duty discounts
| GETTYScottish residents receiving the enhanced rate mobility component of Adult Disability Payment or Scottish Adult Disability Living Allowance can similarly benefit from these reductions.
Meanwhile, parents with children who receive the higher rate mobility component of Child Disability Payment are equally entitled to claim, representing another group that often remains unaware of their eligibility.
The process for securing these exemptions requires initial registration at a Post Office when claiming a vehicle for the first time. "Claiming an exemption is easy, it's done when you apply for your annual vehicle tax," Mr Thompson explained.
Motorists must repeat this process whenever they change or upgrade their vehicle, ensuring the exemption transfers to their new car. The requirement to visit a Post Office for first-time claims means disabled drivers cannot complete the initial application online, though subsequent renewals may be processed through standard channels.