Luxury car tax for blue badge holder

Northern_Wanderer

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 ?

Neither, I was questioning the appearance that the luxury vehicle £425 premium is waived for people in recipt of disability benefits. 

MouldyOldDough

Spoonie_Turtle said:

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.)

Remember, of course, that PIP is NOT means tested and hopefully will remain that way.

but Yes - disabled people do tend to choose higher spec cars - mainly I would guess because Automatic cars, tend to appear higher up the spec range, or at least DID (there are NOW more Auto cars than manual (EV's) - although not PROPER (torque converter) Automatics (they use manual conversions in some cars).

Murphybear

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.

The Government already saves a fortune by deliberately not allowing pensioners to have a Motability car 

I was reading an article earlier on the BBC website.  A group of 5 people  from Bulgaria have committed benefit fraud.  Total amount paid out illegally is £50 million 🙀🙀🙀

MouldyOldDough

Murphybear 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.

The Government already saves a fortune by deliberately not allowing pensioners to have a Motability car 

I was reading an article earlier on the BBC website.  A group of 5 people  from Bulgaria have committed benefit fraud.  Total amount paid out illegally is £50 million 🙀🙀🙀

That was £53.9 million through UC - Which is NOT a disability benefit !!

PIP is so hard to successfully claim - so would be virtually impossible to receive via benefit fraud.

MouldyOldDough

Northern_Wanderer said:

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 ?

Neither, I was questioning the appearance that the luxury vehicle £425 premium is waived for people in recipt of disability benefits. 

The only vehicles liable for the £425 luxury tax would be over £40,000 - and how many people get a car worth over £40,000 on Motability ?

Spoonie_Turtle

MouldyOldDough said:

Northern_Wanderer said:

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 ?

Neither, I was questioning the appearance that the luxury vehicle £425 premium is waived for people in recipt of disability benefits. 

The only vehicles liable for the £425 luxury tax would be over £40,000 - and how many people get a car worth over £40,000 on Motability ?

Potentially loads, it goes by the list price of a new car with the options chosen.  Cars are blooming expensive!

Also applies to people buying their own car and exempt from vehicle tax on those too, of course.