Disabled individuals ― motor vehicles

Produced by a Tolley Value Added Tax expert

Value Added Tax

Guidance

Autumn Budget 2025

Disabled individuals ― motor vehicles

Produced by a Tolley Value Added Tax expert

Value Added Tax

Guidance

Autumn Budget 2025

This guidance note provides an overview of the situations where a disabled person or charity can purchase or hire / lease a motor vehicle at the zero rate of VAT.

Autumn Budget 2025

Changes are to be made to the VAT and Insurance Premium Tax (IPT) treatment of vehicle leases entered into after 30 June 2026.

The VAT changes are intended to restrict reliefs for expensive vehicles provided under qualifying schemes which lease vehicles to eligible disabled people. The IPT changes are intended to bring the tax treatment of qualifying schemes into line with that of other commercial lease providers.

What conditions need to be met to zero-rate a motor vehicle?

The following provides a summary of the types of supply that can be zero-rated under this relief:

Type of user	What goods / services can be zero-rated?
Disabled wheelchair user or individual purchasing a vehicle on behalf of a wheelchair user (nominated representative)	The supply of a ‘qualifying motor vehicle’ that has either been designed to enable the disabled wheelchair

Continue reading the full document

To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+™

TAKE A FREE TRIAL NOW

Popular Articles

Personal Tax

Taxation of dividend income

Taxation of dividend incomeIntroductionA dividend is a distribution of profit by a company to its shareholders.A dividend is not only a payment in cash. It can be the issue of new shares in exchange for forfeiting the right to a cash payment (a stock dividend). For more detail, see the Cash

14 Jul 2020 13:48 | Produced by Tolley Read more

Autumn Budget 2025 Tax Returns

Personal Tax

Inter-spouse transfer

Inter-spouse transferIntroductionWhen a chargeable asset is transferred between two spouses or civil partners, there is a disposal by the transferor spouse / civil partner and an acquisition by the transferee spouse / civil partner for capital gains tax purposes. For simplicity, spouses and civil

14 Jul 2020 12:01 | Produced by Tolley Read more

Value Added Tax

Exemption ― burial and cremation

Exemption ― burial and cremationThis guidance note provides an overview of the VAT treatment of services that are provided in connection with the burial or cremation of human remains.VAT treatmentThe following services are exempt from VAT:•the disposal of the remains of the dead•making arrangements

14 Jul 2020 11:38 | Produced by Tolley Read more

Disabled individuals ― motor vehicles