The UK government is urging Blue Badge holders to apply for a £195 road tax exemption before changes to Vehicle Excise Duty (VED) come into effect in April 2025. The exemption offers significant financial relief for disabled drivers, but many eligible individuals have yet to apply.
What Is the Blue Badge Road Tax Exemption?
While the Blue Badge scheme provides special parking privileges for disabled individuals, it does not automatically grant exemption from road tax. However, those who meet the eligibility criteria can apply for a full Vehicle Excise Duty (VED) exemption, which means they do not have to pay the standard £195 annual road tax.
To qualify, applicants must prove that they receive specific disability benefits related to mobility.
Who Is Eligible for the Road Tax Exemption?
According to the Driver and Vehicle Licensing Agency (DVLA), individuals may qualify for the exemption if they receive one of the following:
- The higher rate mobility component of the Disability Living Allowance (DLA).
- The enhanced rate mobility component of the Personal Independence Payment (PIP).
- The War Pensioners’ Mobility Supplement.
- A vehicle registered in the name of an organisation that provides transport for disabled people.
Importantly, not all Blue Badge holders qualify for this exemption. The eligibility is tied to mobility-related benefits, not just the possession of a Blue Badge. More details can be found on the UK Government’s official website.
How to Apply for the Road Tax Exemption
Eligible individuals can apply for the exemption through the DVLA using the following steps:
- Prepare Required Documents – Applicants must provide proof of eligibility, such as a PIP or DLA award letter.
- Complete the Application Form – The V188 (Application for Exemption from Vehicle Tax) form must be filled out. It can be downloaded from GOV.UK.
- Submit the Application – The completed form and supporting documents should be sent to the DVLA via post or submitted at a Post Office that handles vehicle tax.
- Approval and Refunds – Once approved, the applicant will no longer be required to pay road tax. If they have already paid, a refund for any remaining full months of tax will be processed.
Upcoming April 2025 Road Tax Changes
From April 1, 2025, new road tax rules will be introduced, impacting all vehicle owners, including those with disabilities. Key changes include:
- Electric Vehicles (EVs) Will No Longer Be Exempt – EVs registered between April 2017 and March 2025 will now be subject to the £195 annual road tax. Vehicles registered after April 2025 will pay a first-year tax of £10, followed by the standard rate.
- Increased First-Year Tax for New Vehicles – New petrol, diesel, and hybrid cars will face increased first-year tax rates. High-emission vehicles will see first-year tax rise to £5,490 for those emitting over 255g/km CO₂, up from £2,745.
For full details on upcoming road tax changes, visit AutoTrader.
Why Blue Badge Holders Should Act Now
With road tax exemptions being processed by the DVLA, applying before April 2025 ensures that eligible individuals avoid unnecessary charges. Any delays in application processing could result in individuals being charged VED under the new rules, even if they qualify for an exemption.
Additional Financial Support for Blue Badge Holders
Aside from road tax exemption, disabled individuals in the UK may also be eligible for other financial reliefs, including:
- Motability Scheme – Offers affordable leasing options for vehicles adapted for disabled users.
- Disabled Parking Concessions – Free or discounted parking in local council areas. (GOV.UK)
- Fuels Duty Relief – Discounts for those using specially adapted vehicles.
Conclusion
The Blue Badge road tax exemption is a valuable financial benefit for eligible disabled individuals, helping to reduce transportation costs. However, with major road tax changes coming in April 2025, it is crucial for eligible Blue Badge holders to apply as soon as possible to secure their £195 exemption before it’s too late.
For full details and to start the application process, visit the official government page: gov.uk.
This article has been carefully fact-checked by our editorial team to ensure accuracy and eliminate any misleading information. We are committed to maintaining the highest standards of integrity in our content.
A senior at Yale-NUS College with interests in developmental and labour economics, as well as creative non-fiction and poetry. Currently, I’m studying as an Economics major and an Arts and Humanities minor (focusing on Creative Writing) with heavy involvement in the Singaporean journalism scene and involved in research on economic history and educational policy. I’m working as an author for SKC News, Yale-NUS’ student publication, as a writer for Wingspan, Yale-NUS’ alumni magazine, and as a tutor for the NUS Libraries Writer’s Centre. | Linkedin