Vehicle TAX  REDUCTION                  

New Road tax rates as of 1st April 2017

The new rates will only be affecting vehicles registered on or after 1st of April 2017.

When the new Vehicle tax rates come into force the 50% reduction will still be available. For people who receive the standard rate mobility component of PIP. You will still claim it in the same way as explained below.

You will also be entitled to a 50% reduction on the additional charge added for vehicles of a list price above £40,000 when first registered. For example, a customer purchases a new petrol car with a list price of £41,000 at first registration – they will be entitled to a 50% reduction on the total vehicle tax, including the additional rate.  If they keep the car or purchase it second hand, from the car’s second licence they would pay 50% of the £450 per year (£140 standard rate plus £310 additional rate) for a period of 5 years – i.e. £225 per year.

Who can claim the 50% reduction

To claim the 50% reduction the vehicle must be :
  • Registered in the disabled person’s name or their nominated driver’s name.

You can apply for the 50% reduction  if you get the:

How to claim

If you are entitled to the 50% discount, then you can ONLY obtain this by sending the appropriate paperwork to DVLA, Swansea, SA99 1BF

You must include the following with your application:

  • a letter or statement from the Department for Work and Pensions that shows your PIP rate and the dates you’re getting it - if you’re getting PIP
  • an ADP decision letter from Social Security Scotland that shows your mobility component rate and the dates you’re getting it - if you’re getting ADP
  • the vehicle log book (V5C)
  • V10 form
  • evidence of a current MOT, if you need one - for example, a copy of your vehicle’s MOT history or your MOT certificate, if you have one
  • an original goods vehicle testing (GVT) certificate, if you need one
  • a cheque or payable order (made out to ‘DVLA, Swansea’) for 50% of the full rate of car tax for the vehicle
  • an insurance certificate or cover note (if you live in Northern Ireland)

Don’t include a copy of your PIP adjudication with your application.

If you’ve just bought the vehicle and it’s not registered in your name yet, you’ll need to download and complete a V62 form and include the V5C/2 new keeper supplement with your application.

If the vehicle is not registered to you or the nominated driver
When you make your application you will need to include a signed letter from the vehicle’s registered keeper. This needs to say: 

  • how they know you
  • how the vehicle will be used, for example picking up your prescription or shopping 

if you feel the application will not be processed quickly enough to keep your car taxed you can pay upfront and apply for a refund. You would need to send the same as above but rather than a cheque you can send proof of payment or a covering letter saying when you paid.

Vehicles that receive the 50% reduction are in the standard taxation class for that vehicle. They will not be in the Disabled tax class like vehicles that receive the 100% exemption.


Contact the DVLA by:

To find the address of your nearest Post Office that issues vehicle tax