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This response summarises the submissions received to the consultation, and confirms that draft legislation to exempt eligible taxis has been published for technical consultation, ahead of the legislation being laid before Parliament later this year.
You can also read the draft legislation and supporting explanatory note and tax information and impact note.
At Autumn Budget 2017 the government announced that we would exempt zero emission capable taxis from the VED supplement that currently applies to cars costing over £40,000 from April 2019. On 6 March 2018 the government also announced that all eligible taxis bought from April 2018 never have to pay the supplement at all.
This consultation document sets out how the exemption will work in practice, specifically setting out what it means for those taxi drivers who have already purchased an eligible taxi. It also explores the correct way to define a zero emission capable taxi in legislation in order to apply this exemption from April 2019 onwards.
We encourage anyone with an interest to respond to this consultation using the information provided in Chapter 4.
This consultation closes on 29 May 2018.