Vehicle Excise Duty

HC Deb 07 May 1992 vol 207 c1W

Mr. Burns

To ask the Chancellor of the Exchequer if he will make a statement on the arrangements for granting exemptions from vehicle excise duty.

Sir John Cope

The Government have reviewed, in the light of the introduction of the new disability living allowance on 6 April, the arrangements for exemptions from vehicle excise duty for disabled people.

People in receipt of the higher rate of the mobility component of disability living allowance will continue to be eligible for exemption and invalid carriages will also continue to be exempt.

We have decided to bring forward legislation to repeal, from a day to be appointed by a statutory instrument, that part of the Finance Act 1971 and the Vehicle (Excise) Act 1971 which exempts disabled passengers from duty in Great Britain and Northern Ireland. This is subject to the House approving the necessary Ways and Means resolution, which will be among those appearing in the Order Paper on 8 May.

Transitional arrangements will be made to ensure that all those who currently receive the exemption under the disabled passengers scheme continue to do so after the relevant legislation has been replaced.