Disabled individuals ― motor vehicles

Produced by Tolley
Disabled individuals ― motor vehicles

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

  • Disabled individuals ― motor vehicles
  • Zero-rating conditions
  • Qualifying disabled wheelchair and stretcher users
  • Personal and domestic use
  • Supplies to individuals purchasing a vehicle on behalf of a wheelchair user
  • Qualifying adapted motor vehicles
  • The three-year rule
  • Exceptions to the three-year rule
  • Customer eligibility declarations
  • Repair and maintenance services
  • More...

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.

Zero-rating conditions

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

Type of userApplicable 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 usersThe cost of adaptations to suit the individual’s needs can be zero-rated
Charities that make a qualifying motor vehicle available to a disabled wheelchair userThe supply of a ‘qualifying motor vehicle’ that is designed or substantially and permanently adapted to enable a disabled person to travel in it and the supply of certain other vehicles can be zero-rated
Eligible bodies under VATA 1994, Sch 8, Group 15Adapted motor vehicles and in certain circumstances, unadapted vehicles can be zero-rated

VATA 1994, s 30, Sch 8, Group 12, items 2(f), 3, 4, 5, 6 and 14 as amended by SI 2001/754

Qualifying disabled wheelchair and stretcher users

All of the following conditions must be satisfied before the sale or lease / hire of an adapted motor vehicle to disabled wheelchair / stretcher users can be zero-rated:

  1. the motor vehicle must not be capable of seating more than 12 people including the driver

  2. the vehicle must be supplied to a disabled person who requires a wheelchair or stretcher in order to be mobile

  3. the vehicle must be designed or substantially and permanently adapted to enable the disabled wheelchair /

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