Vehicle Excise and Registration Act 1994 schedule 2 paragraph 16

Exempt vehicles

Schedule 2 paragraph 16 sets out the categories of vehicles that are exempt from vehicle excise duty, meaning no duty is payable when licensing these vehicles.

• Certain vehicles are completely exempt from vehicle excise duty under Schedule 2 of the Act, and a nil licence can be obtained for them.
• The Finance Act 1995 amended the list of exempt vehicles, updating the categories and removing some previously exempt classes.
• Exempt status means the vehicle must still be registered and licensed, but the licence is issued at no cost — a nil-rate licence.
• Owners of exempt vehicles must still comply with registration and licensing requirements; exemption applies only to the duty itself, not to the obligation to hold a valid licence.