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<p>Individuals in receipt of the higher rate mobility component of Disability Living
Allowance (DLA) and its successor, Personal Independence Payment (PIP) qualify for
an exemption from Vehicle Excise Duty (VED). A fifty per cent reduction in VED is
available to those in receipt of the PIP standard rate mobility component.</p><p>
</p><p>Individuals who do not qualify for an exemption or the reduced rate pay VED
in line with other motorists. To limit the impact on the public finances, a five per
cent surcharge applies to monthly and six monthly direct debit payments.</p>
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