Disabled individuals ― motor vehicles

Copyright © 2025 LexisNexis
Produced by a Tolley Value Added Tax expert
Value Added Tax
Guidance

Disabled individuals ― motor vehicles

Copyright © 2025 LexisNexis
Produced by a Tolley Value Added Tax expert
Value Added Tax
Guidance
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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.

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 userWhat 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 user to travel in it, or substantially and permanently adapted in order to enable the disabled wheelchair user to travel in it
Disabled individuals who are not wheelchair usersThe cost of adaptation the vehicle to suit the individual’s needs
Charities that make a qualifying motor vehicle available to a disabled wheelchair userThe supply of a ‘qualifying motor vehicle’ that is either designed or substantially and permanently adapted to enable

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  • 28 Jul 2023 15:33

Home/ Tolley Tax Guidance/ Value Added Tax / Dealing with sector specific VAT issues

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