Disabled individuals ― motor vehicles

By Tolley

The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

Disabled individuals ― motor vehicles
Zero-rating conditions
The three-year rule
Customer eligibility declarations
Repair and maintenance services
Adapting an existing vehicle
Penalties
Supplier obligations
Supplying charities
Supplying eligible bodies
International transactions
Eligibility declarations

This guidance note provides an overview of the situations where a disabled person or charity can purchase or hire a motor vehicle at the zero-rate of VAT. Further information can be found in the HMRC manual ― VAT reliefs for disabled people.

Notice 1002 ; VRDP29000

This guidance note has been updated to include the changes announced in Budget 2016 that came into effect from 1 April 2017.

Zero-rating conditions

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

Type of user	Applicable zero-rating relief
Disabled wheelchair user, or Individual purchasing a vehicle on behalf of a wheelchair users (nominated representative)	The supply of a ‘qualifying motor vehicle’ that has been designed to enable the disabled wheelchair user to travel in it, or substantially and permanently adapted to enable the disabled wheelchair user to travel in it and the adaptation is necessary to enable that person to travel in the vehicle can be zero-rated
Disabled individuals who aren’t wheelchair users	The cost of adaptations to suit the individual’s needs can be zero-rated
Charities that make a qualifying motor vehicle available to