if this is correct then how do motability manage to get their cars for lease vat free when their customers are not all in wheelchairs ,
As I understand it: all car leasing companies will recover the VAT on new vehicles they purchase. The difference with motability is that their income comes in the form of government grant (DLA/PIP/etc payments). A typical car leasing company would invoice its customers for the lease + VAT. Clearly there is an HMRC exemption in force for motability which is effectively to our advantage.