Luxury car tax for blue badge holder

WhiteyCantley

Hi all,
After spending hours looking online I've been unable to find any information if a car qualifying for luxury car tax is exempt from this under the blue badge scheme like the VED or are they two separate entities ?

Thank you 

MouldyOldDough

Luxury Car Tax is part of VED, triggered by a car’s price/history—not by disability or Blue Badge.

A Blue Badge gives parking perks but doesn’t affect the luxury car supplement.

VED exemption for a disabled person can remove both standard VED and the luxury supplement—only if you qualify via benefits, not merely by holding a Blue Badge.

Albermarle

As above the rules for getting a blue badge, and the rules for getting a VED exemption are not the same.

WhiteyCantley

Mouldyolddough, Albermarle thanks for the reply although I failed to really accurately describe my query by stating blue badge scheme. Apologies for the late response I have been away.

I have been awarded the highest rate of PIP and as such received free road tax status for my current car. However I am due to replace my car with a newer one that had a list price over £40,000 when new ( not difficult to do nowadays ). Would I have to pay the premium tax and get free road tax still or would the premium tax come under the free road tax element of the car being registered for disabled use. I hope that's a bit clearer 😕

Thanks Paul 

MouldyOldDough

WhiteyCantley said:

Mouldyolddough, Albermarle thanks for the reply although I failed to really accurately describe my query by stating blue badge scheme. Apologies for the late response I have been away.

I have been awarded the highest rate of PIP and as such received free road tax status for my current car. However I am due to replace my car with a newer one that had a list price over £40,000 when new ( not difficult to do nowadays ). Would I have to pay the premium tax and get free road tax still or would the premium tax come under the free road tax element of the car being registered for disabled use. I hope that's a bit clearer 😕

Thanks Paul 

✅ Eligibility for Full Exemption

• You must receive the Enhanced/High‑Rate Mobility Component of PIP (or the equivalent under DLA, ADP, etc.)

• You can claim 100% VED exemption on one vehicle at a time — regardless of its CO₂ emissions or sale price.

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💰 What About the £40,000 “Premium” Charge?

Normally, cars with a list price over £40,000 incur an extra £425/year premium for five years after the first registration.

• If you do not qualify for exemption (i.e., only receive Standard-Rate PIP), you'd pay the standard VED + 50% of that premium.

• But since you have Enhanced-Rate PIP, you qualify for full exemption, which zeros out both the standard VED and the £425 premium, even on high-value cars.

Spoonie_Turtle

^ is that from an AI?  They can't be trusted, you need to check directly from the relevant source(s).

MouldyOldDough

Spoonie_Turtle said:

^ is that from an AI?  They can't be trusted, you need to check directly from the relevant source(s).

I have checked with Honest John - who agrees with my AI