Millions can avoid hefty car tax hikes this April with four exemptions – find out if your motor is eligible

MILLIONS could avoid the upcoming hike in car tax with four handy exemptions, an expert has revealed.

Vehicle Excise Duty (VED) is set to increase by 10.1% from April 1, seeing the basic rate rise from £165 to £180

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Fortunately, the Government has laid out a number of loopholes that allow a sizeable number of drivers to avoid the brunt of the cost.

Khari Findlay from used car dealership franchise shared some of the top exemptions to raise awareness among motorists.

First of all, he explained that there is a complete exemption for "historic vehicles", meaning classic car owners can breathe a sigh of relief.

This is any motor first registered more than 40 years ago on a rolling basis - the cutoff is currently 1984.

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Helpfully, these cars are also exempt from MOT requirements and ULEZ or CAZ emissions standards.

Secondly, there is another complete exemption for EVs which was introduced to try and encourage the uptake of zero-emission vehicles.

Any fully electric car is subject to zero road tax.

However, this will not be the case for much longer, with the exemption set to end on April 1 2025.

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EVs registered between April 1 2017 and March 31 next year will be subject to the standard £180 rate while those registered after the cutoff date will pay £10 for the first year before moving onto the standard rate in 2026.

Those worth over £40,000 will also be subject to the Expensive Car Supplement charge of £390 a year for five years.

And those registered from March 1 2001 to March 30 2017 will pay £20 a year.

Similarly, there is a discount available for owners of plug-in hybrids depending on their emissions.

Hybrids qualify for a lower tax band meaning they pay between nothing a £110 for the first year of registration and then £155 annually after that.

You can check your vehicle's tax status with DVLA.

Finally, disabled drivers claiming particular benefits have a couple of options open to them.

If you claim the enhanced/higher rates of most disability benefits you can qualify for a complete exemption on your car as long as it is only used for your personal needs.

But those claiming the basic rate of the Personal Independence Payment or Adult Disability Payment can still apply for a 50% reduction on their tax bill.

A full list of the legibility criteria can be found at the bottom of this article or on gov.uk.

Darren Miller, Marketing Director at Big Motoring World, added: "With the rising cost of living, drivers are feeling the squeeze as rates for road taxes once again increased across the board this year. 

"Fortunately, exemptions are available for disabled drivers to help with this rising cost. It also pays off to upgrade to a newer car or make the switch to hybrid and electric, as lower emissions put you in a lower price band. 

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"However, it’s important to remember that qualifying for an exemption is not enough, as you will still need to make an official claim before you can reduce your tax bill. 

"Just because your vehicle is exempt from road tax, you shouldn’t forget to register it with the DVLA if you will be using it on a public road or file a Statutory Off Road Notification when your vehicle is ‘off-road’ for a certain period."