Vehicle Excise and Registration Act 1994 section 1ZA

50% reduction in vehicle excise duty for disabled persons receiving standard rate mobility component

Section 1ZA provides a 50 per cent reduction in the annual rate of vehicle excise duty for vehicles used by or for disabled persons who receive the standard rate mobility component of either personal independence payment or disability assistance for working age people (the Scottish equivalent).

• The annual vehicle excise duty is reduced by 50 per cent for a vehicle used by or kept for a disabled person receiving the standard rate mobility component of personal independence payment or Scottish disability assistance for working age people.
• The vehicle must be registered in the name of the disabled person (or their appointee or nominee), and no other vehicle registered in their name may already benefit from this reduction or be exempt under the disabled persons exemption provisions.
• A person who would be receiving the qualifying benefit but for the fact that their payment has been suspended or reduced to nil because they are an in-patient in a hospital or similar institution is still treated as receiving that benefit for these purposes.
• The vehicle may be registered in the name of an appointee (a person authorised to act on behalf of the disabled person under social security legislation) or a nominated person, rather than in the disabled person's own name, and the reduction will still apply.