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HMRC rules say you can’t claim tax relief on new cars less than 3 years apart. My Motability lease is 3 years soon and I will extend the lease so if I buy a new car and get VAT relief on the new price, can I get a new car on motability during the extended lease period? I don’t remember having to declare any such info before.
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You can get a new mobility car at any point during your extended lease, if that help.
Joss
Current car: BMW X2 sDrive 20i M Sport 5dr Step Auto In metallic Portimão Blue. 04:10:2025
Previous car:Peugeot 308 GT Premium 1.2 Pure tech Petrol.HMRC rules say you can’t claim tax relief on new cars less than 3 years apart. My Motability lease is 3 years soon and I will extend the lease so if I buy a new car and get VAT relief on the new price, can I get a new car on motability during the extended lease period? I don’t remember having to declare any such info before.
The 3 year rule only applies to private purchases. It was introduced because some disabled people were buying cars VAT free and then selling them on very quickly making vast profits. Getting a car through Motability is very different. The scheme operates under a block VAT exemption and as a customer you never own the car, so you do not directly benefit.
Hi,
Tax relief can only be claimed on a new car that you purchase privately and own, as the owner of all motability cars are owned by motability soley and leased to you, you can not claim any releif.
The A. P. does not count
Cheers Mike
I think Lawrence is saying 1) extend lease on Motability car then 2) whilst in lease extension buy a car (a second car) and presumably claim VAT relief? Then 3) order another Motability car whilst in the lease extension
Can any joe bloggs who is disabled and in receipt of DLA/PIP etc claim VAT relief on a new car purchase or do you have to be VAT registered running a company that already pays VAT
I bought some basic mobility appliances from a Mobility Shop a while back and i think i got those VAT free.
As others have said the ruling applies to private vehicles.
Another point to mention is – Although the Motability scheme is VAT exempt, it is not administered through the HMRC.
It’s a grey area that seems to vary by dealer.
A couple I spoke to were willing to push it through, daughters a wheelchair user but it would have been a normal vehicle.
Others where very strict to the wording and wouldn’t as the vehicle wouldn’t be significantly and permanently adapted.
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