Vehicle Excise and Registration Act 1994 schedule 2 paragraph 21

Exempt vehicles

Schedule 2 paragraph 21 identifies the categories of vehicles that are exempt from vehicle excise duty and therefore do not require a paid vehicle licence.

• Certain vehicles are completely exempt from vehicle excise duty, meaning their keepers do not need to pay for a vehicle licence, although they may still need to register and declare the exemption.
• The exemption applies to specific categories of vehicle based on their use, ownership, or characteristics, as set out in the broader provisions of Schedule 2 to the Act.
• The Finance Act 1995 amended the original exemption provisions, updating the list and conditions under which vehicles qualify for exempt status.
• Keepers of exempt vehicles must still comply with registration requirements and may need to obtain a nil-rate licence to confirm their exempt status.