Policy paper

Exempt zero-emission capable taxis from Vehicle Excise Duty expensive car supplement

This measure exempts zero-emission capable taxis from the Vehicle Excise Duty expensive car supplement.

Documents

Draft legislation

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Explanatory note

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Details

Most new purpose-built capable taxis are currently liable to pay the VED supplement as they have a list price of over £40,000. Drivers of other vehicles used as taxis or private hire vehicles/private hire cars have many choices of vehicle that cost less than £40,000.

Therefore, as announced at Autumn Budget 2017, the government is legislating to exempt purpose-built zero-emission capable taxis from the VED supplement.

A consultation with a summary of responses about zero emission capable taxis: Vehicle Excise Duty rates is also available.

Published 6 July 2018