# Finance Act 2020, Section 85: Electric vehicles: extension of exemption


(1) VERA 1994 is amended as follows.
(2) In paragraph 25 of Schedule 2 (exempt vehicles: light passenger vehicles with low CO2 emissions) omit sub-paragraphs (5) and (6) (no exemption if vehicle price exceeds £40,000 etc).
(3) As a consequence, Part 1AA of Schedule 1 (annual rates of duty: light passenger vehicles registered on or after 1 April 2017) is amended as follows.
(4) In paragraph 1GB (exemption from paying duty on first vehicle licence for certain vehicles)—
(a) in sub-paragraph (1) omit “(2) or”, and
(b) omit sub-paragraph (2).
(5) In paragraph 1GD (rates of duty payable on any other vehicle licence for vehicle), in sub-paragraph (2) omit “or (4)”.
(6) In paragraph 1GE (higher rates of duty: vehicles with a price exceeding £40,000)—
(a) omit sub-paragraphs (3) and (4), and
(b) in sub-paragraph (5) for “sub-paragraphs (2) and (4) do” substitute “ Sub-paragraph (2) does ”.
(7) In paragraph 1GF (calculating the price of a vehicle), in sub-paragraph (1) omit “and (3)(a)”.
(8) The amendments made by this section come into force on 1 April 2020 but do not apply in relation to licences in force immediately before that date.

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Source: https://www.legislation.gov.uk/ukpga/2020/14/section/85 (the official version)
Page: https://openlegislation.uk/finance-act-2020/section-85
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.