Like others, the only way that I can see the IPT being applied is the same way as insurance (exc IPT) is currently applied – through an across the board AP increase.
This begs a question though. As my wife is a full time wheelchair user, and we have a permanent and substantial adaptation (person hoist), we would be exempt from the 20% VAT hike on APs. According to the rules posted above, we should be also exempt from the IPT, so how will that happen if it’s just been spread across all APs? I suspect that we would end up paying it if all APs rise across the board to allow for the IPT.
Another thought (although not budget related) is that if we buy a new car privately we can get the full 20% VAT deducted off ALL of the following – purchase price including the cost of all options, servicing & maintenance costs etc. Therefore, why is it that if we add any options to a Motability car we are liable to pay the full cost of any optional extras (including VAT)?