Are disabled drivers exempt from paying the higher rate of VED on cars costing over £40,000?

A relative of mine has just been awarded the enhanced mobility on Personal Independence Payment. The car that he wants to buy (a Discovery Sport) isn’t available on the Motability scheme and he prefers to buy his own car anyway. Firstly is he exempt from paying the first year VED (£855) included in the list price of the car? And secondly, because the list price of the car exceeds £40,000 is he exempt from paying the higher VED which is around £450 per year?

Asked on 18 April 2019 by Steven

Answered by Honest John
They will still be able to claim the road tax exemption, even for the additional price for vehicles with a list price of more than £40,000 when first registered. To claim the exemption or reduction the vehicle must be registered in the disabled person’s name or their nominated driver’s name. It must be only be used for the disabled person’s personal needs. That means the vehicle can’t be used by the nominated driver for their own personal use.

We work with Disabled Motoring UK who have more here:
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