Reply To: Should Motability’s Monopoly Be Broken Up

#167852
BigDave
Participant

    The VAT issue is an easy fix. Any disabled person buying a disability aid can currently get the item VAT free.

    Not quite.

    HM Revenue and Customs requirements which must be certificated by the applicant state:

    Relief from VAT is only available if all four following
    conditions are met:
    • the individual purchasing the vehicle (or for whom the
    vehicle is being purchased) is normally a wheelchair user
    • the adapted motor vehicle is being purchased for the
    wheelchair user’s personal and domestic use
    • the vehicle has been permanently and substantially adapted
    to meet the wheelchair user’s individual requirements
    • the individual purchasing the vehicle (or for whom the
    vehicle is being purchased) hasn’t (since 1 April 2017)
    obtained a VAT free vehicle under this relief in the past 3
    years (unless exceptions to the three year rule apply)

    https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/605061/VAT1615A.pdf

     

    Full Gov.uk Guidance here:

    https://www.gov.uk/guidance/vat-relief-on-adapted-motor-vehicles-for-disabled-people-and-charities-notice-1002#sec13

     

    So basically, the vehicle has to be for a wheelchair user and also permanently and substantially adapted
    to meet the wheelchair user’s individual requirements.

    An ambulant disabled person, requiring only minor adaptions, such as a steering wheel ball would not meet  the requirements.