Exemption for search and rescue vehicles from Vehicle Excise Duty (VED)
Published 13 July 2026
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Who is likely to be affected
Registered charities whose main purpose is to carry out search and rescue activities in the United Kingdom or the UK marine area.
General description of the measure
The measure will ensure that charities whose main purpose is to work with authorities on search and rescue operations will no longer need to pay Vehicle Excise Duty (VED). For a vehicle to be exempt from VED, it must meet all the following criteria:
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it is primarily used for search and rescue activities
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it is readily identifiable as a vehicle used for search and rescue activities by being marked ‘Search and Rescue’ on both sides
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it is registered to a search and rescue charity
Policy objective
The measure will ensure that search and rescue vehicles operated by charities are exempt from the requirement to pay VED, supporting the vital work of these charities.
Background to the measure
The government announced at Budget 2025 that it will exempt search and rescue vehicles from VED and will work with stakeholders to design and implement an exemption from April 2027.
Detailed proposal
Operative date
This measure will have effect from 1 April 2027.
Current law
The Vehicle Excise and Registration Act 1994 (VERA) sets out the law for VED and the registration of vehicles in the UK. Schedule 2 specifies the descriptions of vehicles which are exempt from the payment of VED.
Proposed revisions
This measure will amend Schedule 2 to VERA to exempt the eligible search and rescue vehicles operated by charities from being charged VED.
Summary of impacts
Exchequer impact (£ million)
| 2025 to 2026 | 2026 to 2027 | 2027 to 2028 | 2028 to 2029 | 2029 to 2030 | 2030 to 2031 |
|---|---|---|---|---|---|
| Negligible | Negligible | Negligible | Negligible | Negligible | Negligible |
This measure is expected to have a negligible impact on the Exchequer.
Macroeconomic impact
This measure is not expected to have any significant macroeconomic impacts.
Impact on individuals, households and families
This measure has no impact on individuals as it reduces costs for registered keepers of search and rescue vehicles operated by search and rescue charities in the UK. The measure is not expected to impact on family formation, stability or breakdown.
Equalities impacts
This measure reduces costs for registered search and rescue charities in the UK. As such, no impact on the equality of groups sharing protected characteristics has been identified.
Administrative impact on business including civil society organisations
This measure is expected to have an impact on UK based search and rescue umbrella organisations and their sub-organisations that work to UK Search and Rescue, by not requiring them to pay VED on eligible vehicles. The administrative impact is expected to be negligible. One-off costs will include familiarising themselves with the change. There are not expected to be any continuing costs.
Customer experience is expected to remain broadly the same as this measure does not significantly change existing processes.
Operational impact (£ million) (HMRC or other)
There will be negligible financial impact on operational costs for the Driver and Vehicle Licensing Agency (DVLA).
Other impacts
Other impacts have been considered and none have been identified.
Monitoring and evaluation
This measure will be monitored through the DVLA vehicle licensing data, as well as through regular communication with relevant stakeholders across government and in industry.
Further advice
If you have any questions about this change, contact HM Treasury.