TfL Taxi Delicensing Scheme: Your Eligibility

In an ongoing effort to improve London's air quality and modernise its iconic taxi fleet, Transport for London (TfL) has introduced a significant initiative: the Delicensing Scheme. This programme is designed to encourage the removal of older, more polluting taxis from active service in Greater London by offering a financial payment in return for their permanent delicensing. It’s crucial to understand that this scheme is not about applying for a new taxi license, but rather about the process of relinquishing an existing one. For taxi owners and operators in the capital, navigating the specifics of this scheme is paramount to a successful application. This comprehensive guide will delve deep into the eligibility criteria, the application process, payment structures, and the essential obligations involved, ensuring you have all the necessary information to consider participating in this vital environmental initiative.

Understanding the TfL Taxi Delicensing Scheme

The Taxi Delicensing Scheme is a key component of the wider Taxi and Private Hire Action Plan launched jointly by the Mayor of London and TfL. Its primary aim is to accelerate the transition to a cleaner, greener taxi fleet within Greater London. By offering a payment for older, higher-emission vehicles, TfL seeks to reduce harmful pollutants and improve the overall environmental impact of the city's transport network. The scheme operates while funding is available, and applications are assessed on a rolling basis. It's important to note that the total available funding and the duration of the scheme can be adjusted at TfL's discretion, with no long-term commitment made regarding its duration or funding levels.

Who Can Apply for the Delicensing Scheme?

Eligibility to apply for the TfL Taxi Delicensing Scheme is strictly defined to ensure proper ownership and authorisation. The application must be submitted by one of two parties:

• The Legal Owner of the Taxi: This is the individual or entity who can conclusively demonstrate ownership of the vehicle through official proof of purchase, such as a bill of sale, or proof that the vehicle was received as a gift. If the Registered Keeper is different from the Legal Owner, the Legal Owner must have explicit written permission from the Registered Keeper to proceed with the delicensing application.
• The Registered Keeper of the Taxi: This is the person whose name appears in section five of the Taxi's V5C registration document. While often the same as the Legal Owner, the Registered Keeper is primarily the person using or keeping the taxi. If the Registered Keeper is not the Legal Owner, they must obtain written and signed permission from the Legal Owner before submitting the application to delicense the taxi. This permission must be documented as per the Proof of Permission document specified by TfL, and the Legal Owner must be provided with the application details.

TfL reserves the right to request additional evidence to verify that the necessary permissions have been granted, particularly when the Registered Keeper is applying on behalf of the Legal Owner. This may include direct verification with the Legal Owner using the contact information provided.

It is also important to note that only one application is permitted per taxi. Any attempt to submit a single application to delicense multiple taxis will result in rejection.

Key Eligibility Criteria for Your Taxi

Beyond who can apply, the taxi itself must meet a stringent set of criteria to be considered for the scheme:

Vehicle Age and Emission Standards

The scheme is structured into two payment bands, primarily determined by the taxi's age and Euro emission standard. The age of the taxi is calculated from its DVLA first date of registration, as stated on the V5C registration document (specifically dates shown at 4(B) and B1). The Euro emissions output is also determined by the V5C document.

Valid Taxi Vehicle Licence (TVL)

To be eligible, your taxi must possess a valid Taxi Vehicle Licence issued by TfL. Crucially, the successful Delicensing Inspection must take place before this TVL expires. It is the sole responsibility of the applicant to ensure the taxi is presented for inspection within this timeframe. If the TVL expires before the inspection, the Legal Owner or Registered Keeper will need to re-license the taxi at their own expense before the delicensing inspection can proceed. TfL will not cover any costs associated with re-licensing the vehicle.

Roadworthiness and MOT Certification

At the point of application submission and when presenting the vehicle for the Delicensing Inspection, the taxi must be roadworthy and hold a valid MOT certificate. This MOT certificate must have been issued no more than six months prior to the date of the Delicensing Inspection and must be provided with other required documents during the inspection.

Continuous Licensing History

The taxi must not have been without a Taxi Vehicle Licence for more than three consecutive months (90 calendar days) within any rolling 12-month period. Exceptions to this rule may only be considered by TfL in exceptional circumstances where the lack of licence was genuinely outside the applicant's control.

Ownership Stability

To prevent potential misuse of the scheme, the taxi must not have undergone a change of ownership within six months prior to the date of submitting the application. This restriction also applies to transfers of ownership between 'Related Entities', which include businesses where the Legal Owner is an owner/shareholder, any group companies of such businesses, and family members related to the Legal Owner. Shorter ownership periods may only be considered in exceptional circumstances at TfL's discretion.

Matching TfL Records

All information provided in the application must precisely match the licensing records and documents held by TfL. Any discrepancies discovered will necessitate further information requests from TfL, which must be responded to promptly.

The Delicensing Application Process: A Step-by-Step Guide

Once you've confirmed your eligibility and that of your taxi, the application process follows a structured path:

Application Submission

The first step is to submit your application to TfL. This is a crucial stage where all required documentation, including the Proof of Permission, the signed Terms and Conditions, and the Subsidy Control Disclosure Form, must be completed and submitted within 7 Working Days of receiving the 'Taxi Delicensing Scheme - Second Stage of Application Process' letter.

Inspection Letter and Booking

Upon successful submission and receipt of the correct signed documentation, TfL will issue an Inspection Letter to the applicant. From the date of this letter, you have 14 Working Days to book a Delicensing Inspection. Following this, you are permitted a further 14 Working Days to present your taxi at a TfL authorised test centre for the inspection. This means you have a total of 28 Working Days from the date of the Inspection Letter to complete the delicensing process.

The Delicensing Inspection

The Delicensing Inspection is a mandatory assessment of the taxi and its documentation, conducted at a TfL inspection centre. While there is no direct cost to the applicant for the inspection itself, you are responsible for all associated costs, such as fuel, driver's wages, and any necessary repairs or paperwork rectifications identified during the inspection. The Legal Owner may appoint the Registered Keeper or an authorised third party to present the taxi for inspection, provided sufficient evidence of their authority is furnished to TfL. It is imperative to bring all required documentation, as specified in the Inspection Letter, to avoid the inspection being unsuccessful, rescheduled, or cancelled. During this inspection, TfL will retain your Taxi Vehicle Licence. Regardless of the inspection's outcome, the taxi cannot be used for fare-paying passengers in London from this date.

Inspection Outcomes

Following the inspection, the applicant or authorised third party will receive a Report indicating whether the taxi has passed or failed. If the taxi fails to pass the Delicensing Inspection within the stipulated 28 Working Days from the Inspection Letter date, the application will be withdrawn by TfL without further notice. A new application would then be required, with payment based on the new application's terms. Once a taxi successfully passes the Delicensing Inspection, it is permanently delicensed in Greater London, cannot be relicensed by TfL, and is no longer permitted for use as a taxi in the capital. Furthermore, it loses its exemptions from charges such as the London Congestion Charge and the Ultra Low Emission Zone (ULEZ).

Understanding the Payment Structure

A successful application culminating in a passed Delicensing Inspection makes a taxi eligible for a payment from TfL. The precise amount of this payment is determined by two factors: the taxi's age at the time of the successful inspection (as per the payment bands outlined earlier) and the time and date your application was received relative to others. Current payment levels are detailed on the TfL website. It is important to be aware that these payment amounts are subject to change at TfL's sole discretion and without prior notice. Payments are made exclusively to the Legal Owner of the taxi, into a UK bank account, via BACS transfer within 21 Working Days of TfL receiving the necessary bank details. Applicants are strongly advised not to dispose of their delicensed taxi until the payment has been successfully received.

Important Obligations and Restrictions

Participation in the Delicensing Scheme comes with specific obligations for the Legal Owner and imposes permanent restrictions on the delicensed vehicle.

Legal Owner's Warranties

By entering into the agreement with TfL, the Legal Owner warrants several key points: they possess the full capacity and authority to enter into the agreement (including appropriate authority from the Registered Keeper where applicable); all information and documentation provided in the application and during the inspection is accurate, and any changes will be immediately communicated to TfL; and finally, that the Legal Owner or Registered Keeper will not attempt to sell the taxi after receiving payment if there are any outstanding finances or other charges on the vehicle.

Restrictions Following Successful Delicensing

Once a payment has been made for a delicensed taxi, the application cannot be withdrawn, and the following permanent restrictions apply:

• The taxi will remain permanently delicensed in Greater London.
• It cannot be relicensed for use as a taxi in Greater London.
• It is not permitted for use as a taxi in Greater London.
• The delicensing of the taxi cannot be reversed.

Should payment levels for the scheme change after you have received a payment or a written confirmation of payment, TfL will not offer any compensation for the difference. All payments made or offered are considered final.

Subsidy Control: What You Need to Know

A crucial aspect of the Delicensing Scheme involves compliance with Subsidy Control Rules, which are regulations designed to minimise distortion of competition by limiting the amount of 'Assistance' (financial or non-financial aid from public resources) that can be provided. In accepting the payment, the Legal Owner agrees to comply with all applicable Subsidy Control Rules. This includes fully cooperating with TfL in utilising relevant approvals and procedures.

The Subsidy Threshold

TfL's scheme operates with a specific Subsidy Threshold of £170,000. This is the aggregate ceiling for all 'Small Amounts of Assistance' that can be provided to any one organisation, including the Legal Owner and all their 'Related Entities', over a 'Reference Period'. The Reference Period encompasses the current fiscal year and the two preceding fiscal years. 'Related Entities' specifically refers to any business where the Legal Owner is an owner/shareholder, any group companies of such businesses, and family members related to the Legal Owner.

Declaring Small Amounts of Assistance

Applicants are required to inform TfL of all 'Small Amounts of Assistance' received or expected to be received from any public organisation within the Reference Period. This includes not only grants but also other forms of support such as free or subsidised consultancy services or training. The Legal Owner must complete the 'Subsidy Control Disclosure Form' (Schedule 1) to declare this information accurately. Failure to provide accurate or complete information in this form may result in TfL declining to make a payment or seeking recovery of any payment already made.

Common Pitfalls and Reasons for Application Termination

TfL reserves the right, at its absolute discretion, to decline or terminate an application under various circumstances, typically stemming from non-compliance with the terms and conditions:

• Failure to submit required documents: This includes the Proof of Permission, signed Terms and Conditions, and the Subsidy Control Disclosure Form within 7 Working Days of receiving the relevant letter.
• Missing inspection deadlines: Not carrying out a Delicensing Inspection within 28 Working Days from receiving the Inspection Letter, or failing to attend the scheduled inspection.
• Insufficient or inaccurate information: Not providing sufficient or additional information as requested by TfL within 5 Working Days of the request.
• Outstanding debts: If the applicant has any outstanding debts relating to previous applications to this specific scheme.
• Breach of terms or fraudulent applications: Any breach of the terms and conditions, including submitting fraudulent or inaccurate applications, will lead to TfL seeking recovery of any payment made and potentially initiating legal proceedings against the Legal Owner and/or Registered Keeper, as well as revoking their taxi license.

Frequently Asked Questions (FAQs)

Can I re-license my taxi after it has been delicensed under this scheme?

No. Once a taxi has been successfully delicensed and a payment made under this scheme, it cannot be relicensed by TfL for use as a taxi in Greater London. The delicensing process is permanent and irreversible.

What if my taxi's Taxi Vehicle Licence (TVL) expires before the Delicensing Inspection?

It is your responsibility to ensure the inspection takes place before your TVL expires. If it expires, you will need to re-license your taxi at your own cost before you can proceed with the Delicensing Inspection.

Who pays for the Delicensing Inspection?

There is no direct cost to the applicant for the inspection itself. However, you are responsible for all associated costs, such as fuel, driver's wages, or any repairs needed for the taxi to pass the inspection.

What is the difference between a 'Legal Owner' and a 'Registered Keeper'?

The Legal Owner is the person or entity who owns the vehicle, proven by documents like a bill of sale. The Registered Keeper is the person named on the V5C registration document, who is typically the primary user or keeper of the taxi, but not necessarily its legal owner.

What are 'Related Entities' in the context of Subsidy Control?

Related Entities include any business in which the Legal Owner is an owner or shareholder, any group companies associated with that business, and family members related to the Legal Owner. This definition is important for calculating the aggregate 'Small Amounts of Assistance' received under the Subsidy Threshold.

How long does it take to receive the payment after a successful inspection?

TfL aims to make the payment to the Legal Owner's UK bank account via BACS within 21 Working Days of receiving the necessary bank details, following a successful Delicensing Inspection.

Will my delicensed taxi still be exempt from the London Congestion Charge or ULEZ?

No. Once a taxi is delicensed, it loses all exemptions from road user charges such as the London Congestion Charge, the Ultra Low Emission Zone (ULEZ), and any other applicable charges.

Conclusion

The TfL Taxi Delicensing Scheme offers a clear pathway for taxi owners in Greater London to contribute to the city's environmental goals while receiving a financial incentive. Understanding the precise eligibility criteria for both the applicant and the vehicle, meticulously following the application and inspection process, and adhering to all obligations, particularly regarding Subsidy Control, are paramount for a successful outcome. This scheme represents a significant step towards a cleaner transport future for London, and for those whose vehicles meet the criteria, it provides a structured opportunity to participate in this important initiative.

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