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 user to

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

VAT on property disposals

VAT on property disposalsThis guidance note provides an overview of the VAT treatment of selling property that is located in the UK. The UK includes Great Britain, Northern Ireland and the territorial sea of the UK. The sale of any land or building located outside the UK is outside the scope of UK

14 Jul 2020 13:57 | Produced by Tolley Read more

Personal Tax

Self assessment ― estimates and provisional figures

Self assessment ― estimates and provisional figuresIf the taxpayer does not have sufficient information to enable them to complete the tax return in the time allowed, they should include either a best estimate or a provisional figure. The taxpayer should not either leave a box blank or enter

14 Jul 2020 13:37 | Produced by Tolley Read more

Owner-Managed Businesses

Furnished holiday lets

Furnished holiday letsThis guidance note sets out the qualifying conditions for a property let to be treated as a furnished holiday let (FHL) for tax purposes and the subsequent tax implications.Whether or not a property qualifies as an FHL can make an important difference to the taxation

14 Jul 2020 11:46 | Produced by Tolley Read more

Disabled individuals ― motor vehicles