Vehicle Excise and Registration Act 1994 schedule 2 paragraph 20G

Exemption from vehicle excise duty for electrically propelled and zero-emission vehicles

Schedule 2 paragraph 20G provides that electrically propelled vehicles and zero-emission vehicles are exempt from vehicle excise duty (road tax), but this exemption does not apply to light passenger vehicles, light goods vehicles, or motorcycles.

• Electrically propelled vehicles are classified as exempt vehicles for vehicle excise duty purposes.
• Zero-emission vehicles are also classified as exempt vehicles for vehicle excise duty purposes.
• The exemption does not apply to light passenger vehicles, light goods vehicles, or motorcycles — these vehicle categories are subject to their own duty rates under Schedule 1 of the Act.
• Following amendments by Finance Act 2023 and Finance Act 2025, the scope of the exemption has been narrowed by excluding these common vehicle types, meaning the exemption now primarily benefits other vehicle categories such as heavy goods vehicles or specialist vehicles that are electrically propelled or produce zero emissions.

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