VED exemption

bellator

We are considering a Personal Lease Hire for a new car but don't want a Motability deal. The lease includes Vehicle Excise Duty, commonly known as road tax. As my wife has the full mobility allowance can she ask for the VED element to be deducted from the monthly lease payment? The dealer is trying to say that as the contract includes VED then it is free as we don't have to pay it ourselves. My view is that it is calculated into the monthly lease payment and therefore could be deducted. Can anyone throw some light on this please?

TooManyPoints

This is not my area of expertise but think the biggest problem you will face is that, to claim the exemption, the vehicle must be registered in your wife's name and she must hold the V5C. Leased vehicles are normally registered in the lease company's name and they hold the V5C. The lease company cannot claim the exemption (as they are not eligible) and so will have to tax the vehicle. Understandably they will pass this cost on to you.

From memory, I believe Motability have negotiated a different arrangement with the DVLA. The V5C is actually held by them and they arrange the tax for the vehicle and can claim any exemptions for their clients. But the vehicle is actually registered in the client's name (so that the exemption can be granted).

neilmcl

If you want the VED exemption then the car itself has to be registered as a disabled vehicle class.

TooManyPoints

If you want the VED exemption then the car itself has to be registered as a disabled vehicle class.

Perhaps you could give us a source or authority for that.

The vehicle must be registered in the name either of the disabled person or their nominated driver and it must be used only for the personal benefit of the disabled person. There are no restrictions on the vehicle itself and there is no requirement for it to be made or adapted for the use of a disabled person.

Bigwheels1111

AS above, the vehicle needs to be registered as tax class disabled. 
I know as my car is, I took the log book to post office with insurance certificate and ( certificate of entitlement to personal independence payment serial number. comes with pip letter) they send off log book and tax the car. Next year just do it online.
If it could be done as part of the deal it would need to be in your name of wife’s for eg.
Use a photocopy of the form for post office or car company.
Some info here.

https://www.gov.uk/financial-help-disabled/vehicles-and-transport

facade

TooManyPoints said:

If you want the VED exemption then the car itself has to be registered as a disabled vehicle class.

Perhaps you could give us a source or authority for that.

The vehicle must be registered in the name either of the disabled person or their nominated driver and it must be used only for the personal benefit of the disabled person. There are no restrictions on the vehicle itself and there is no requirement for it to be made or adapted for the use of a disabled person.

I think you are at cross purposes. 

The disabled person applies for a certificate of entitlement (to free VED)

Once the certificate of entitlement is used on a vehicle, the taxation class of the vehicle automatically changes to disabled. When the V11 arrives at the next renewal it shows as disabled, and can then be taxed for nothing. - this is probably what neilmcl means.

If the vehicle changes, a new certificate of entitlement has to be obtained, and the taxation class of the old vehicle reverts back to what it should be when next taxed.

Doesn't look as if you can have disabled tax on a lease vehicle though.......

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/873357/ins216-how-to-apply-for-free-disabled-tax.pdf

TooManyPoints

I think you are at cross purposes. 

Yes we were.  Thanks for straightening it out.

Flight3287462

Atr the end of the day the lease company are saying no and that is their prerogative.  Sounds like it also fails under the constraints mentioned above.

Daimler group cars you used to get the car in your name might be worth look there and VED was the leasees problem?