Vehicles exempt from road tax

By law, almost every single roadworthy vehicle in the UK must be taxed. Known as Vehicle Excise Duty (VED) or more commonly referred to as road tax, the funds help cover the cost of road maintenance and safety improvements across the country. 

But did you know that some vehicles are actually exempt from paying any road tax at all? Here at Octane Finance, we explain more in our dedicated road tax exemption article… 

How are tax rates calculated? 

Tax rates are determined by fuel type, the size of a vehicle’s engine and its CO2 emissions. When a new vehicle is first registered the initial road tax payment is initially calculated. 

There are thirteen different tax bands which start at £0 for emissions of 0g/km (applicable to zero emission vehicles such as 100% electric cars) and go up to £2,365 for vehicles which produce emissions of more than 255g/km. These prices differ slightly depending on the compliance of petrol and diesel models; the general rule of thumb is that higher-polluting vehicles are taxed more heavily. 

Road tax rates are subject to inflation, so you can expect new prices to take effect from 1st April every year. More in-depth and up-to-date information about vehicle tax rates can be found on the Government website. 

Road tax exempt vehicle categories

As referenced above, some types of vehicles are in fact exempt from vehicle tax so there’s absolutely nothing to pay when it comes to using them on Britain’s roads. Below, we highlight just what these vehicles are… 

Vehicles used to transport disabled people

Disabled drivers of cars and vans can claim disability exemption when it comes to taxing a vehicle. This includes vehicles owned by a disabled person, as well as vehicles used by organisations providing transport for disabled people, although it does not currently include ambulances. 

Mobility scooters and powered wheelchairs

The law states that mobility scooters and powered wheelchairs are classed as ‘invalid carriage’ vehicles and as such, they are exempt from road tax. Although to qualify for this road tax exemption, these vehicles must be limited to a speed of 8 mph on the road and just 4 mph on footways. 

Historic vehicles

Owners of historic vehicles not only benefit from owning a piece of history, but from paying nothing for road tax too. Any roadworthy vehicle made before January 1st 1982 are exempt from road tax - just make sure it is still in a driveable state to safely use it on the roads. 

Electric vehicles

Welcome to the electric revolution! Owners of electric vehicles not only get the feel-good factor of driving a 100% zero emission vehicle, but are rewarded by paying no road tax rates on their car or van either. Electric Vehicles (EVs) do not produce any direct exhaust or tailpipe emissions so they are classed as the cleaner and greener option for the environment.

Mowing machines

This may sound like rather an unusual category, but there is clearly a need for it. Vehicles in the mowing machines category are exempt from road tax. These are classed as machines designed for and used exclusively for cutting grass, but that may have to travel for very short distances on public roads. 

Steam vehicles

Choo choo! All steam powered vehicles are also exempt from road tax. Although there are no modern steam vehicles currently in production, this category is included for the sake of thoroughness, as some steam vehicles require the use of roads when travelling for exhibition. 

Agriculture, horticulture and forestry vehicles

This exemption applies to off-road vehicles such as tractors and agricultural engines which are used on private land. We’ve all been stuck in traffic when travelling behind a tractor, so it goes without saying that farm machinery often needs to use the roads. However, farmers are restricted to short journeys only and must not exceed more than 1.5 km (just under one mile) of distance on a public road at any given time for a vehicle to be road tax exempt.   

Applying for vehicle tax exemption

Now that we've explained more about road tax exempt vehicles, it’s important to note that drivers of these vehicles will still need to fill out the relevant paperwork. You can apply for vehicle tax exemption at a local Post Office or online using the Government website where it will explain the next steps.