I am sorry guys I got it wrong about the amount of Motability customers I said 200,000 buy according to Disability rights net it is 860,000 PIP recipients currently have a Motability vehicle. Some disability charities are saying though that Motability is going to be a two tier service for disabled even if you have adaptations and it will cost more for some and nothing for others which is barmy and it is said discrimination and maybe a legal challenge may happen.
It’s not discrimination. All they are going to do is exempt full time wheelchair users who need “substantial and permanent adaptations” from the VAT on the AP and the IPT. That’s exactly the same if full time wheelchair users buy a new car privately, so it equates the two things.
As mentioned previously, if there’s anything even remotely approaching ‘discrimination’ it’s actually in favour of Motability customers. Scheme users will remain exempt from VAT on the base lease price. Disabled customers who lease privately are not exempt. Motability obviously made the government realise that this block VAT exemption is critical to the long term sustainability of the Motability scheme.