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.

---

💰 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 

Grey_Critic

MouldyOldDough said:

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 

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

And who is Honest John?

Unless he is an official at DVLA then whatever he says is meaningless. Best people to speak with I would suggest is Motability - they are the people supplying vehicles and applying charges where applicable. They actually Tax and Insure the vehicles so will be set up to to apply charges where applicable.

Northern_Wanderer

MouldyOldDough said:

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.

---

💰 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.

If that is true then no wonder the country is going bankrupt with the "benefits" bill. There are many places that savings could be made. Every little helps.

MouldyOldDough

Northern_Wanderer said:

MouldyOldDough said:

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.

---

💰 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.

If that is true then no wonder the country is going bankrupt with the "benefits" bill. There are many places that savings could be made. Every little helps.

Are you questioning whether enhanced mobility PIP claimants should receive an exemption on road tax ? 

or are you saying that the disabled shouldn't receive benefits such as PIP ?

Spoonie_Turtle

MouldyOldDough said:

Northern_Wanderer said:

MouldyOldDough said:

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.

---

💰 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.

If that is true then no wonder the country is going bankrupt with the "benefits" bill. There are many places that savings could be made. Every little helps.

Are you questioning whether enhanced mobility PIP claimants should receive an exemption on road tax ? 

or are you saying that the disabled shouldn't receive benefits such as PIP ?

I think they're questioning whether the disability exemption should apply to the luxury car supplement for car tax. 

(I can see the rationale though, many disabled people do need bigger cars to fit mobility aids in whole and certain options to make the car accessible and comfortable for us.  And disabled people shouldn't be priced out of owning a car suitable for our needs; those who've been able to buy a more expensive one are still paying full price and all the other running costs anyway.  I don't know what the rationale was for instating an extra component of car tax in the first place but evidently they'll have known whether it would fall under the disability exemption or not when they brought it in.)

What people often forget with 'the benefits bill' is that with generally higher costs for day-to-day living, the money 'spent' on benefits for disabled people mostly just goes straight back into the economy anyway.  We're not hoarding it like CEOs using tax loopholes.  And for those on means-tested benefits if they do receive more than they need to spend to survive, they can't save more than a maximum of £16,000 anyway.  (Although for some means-tested support the cut-off is £6,000, such as in some councils for council tax support.)