[Roger Wikco]

The reason why Motability don’t allow pre registered cars to be leased is because of the VAT rules regarding disabled cars;

https://www.gov.uk/hmrc-internal-manuals/vat-relief-for-disabled-people/vrdp28000

In that giv document, it states;

”

VRDP28000 – Motability
The law
Motor vehicle hired to a disabled person [Item 14]
Excess mileage
Sale of ex-lease vehicles [Item 15]

The law
Item 14. Item 15 and Legal Notes (6) set out the VAT treatment of letting on hire of a motor vehicle to a disabled person and the subsequent sales of such vehicles.

Motor vehicle hired to a disabled person [Item 14]
The zero rate applies to the supply on hire of any motor vehicle, provided that all the following conditions are met:

the business performing the hire service is predominantly concerned with the provision of motor vehicles to disabled persons who are in receipt of the mobility component of disability living allowance or personal independence payment;
the vehicle is unused at the beginning of the letting period;
the period of let is at least three years;
the vehicle is supplied on hire to a disabled person;
the business is paid for the hire wholly or partly by receiving, direct from the Department for Work and Pensions (DWP) or the Ministry of Defence (MOD), on behalf of the lessee, specific ‘mobility’ allowances to which the lessee is entitled; and
the payments referred to in Note (7) comprise a ‘disability living allowance’, personal independence payment, armed forces independence payment or a ‘mobility supplement’.”

Topic