Motability: VAT
The question
To ask the Chancellor of the Exchequer, whether there have been any changes to the methodology HMRC use to estimate the cost of Motability’s VAT reliefs since 2019-20.
Answered by Dan Tomlinson
HMRC publishes estimates of the costs of tax reliefs in its annual Non-structural tax relief statistics publication.
The last publication on 5 December 2024 showed an estimate and forecast for the financial years 2023-24 and 2024-25 of £1,210m for the relief “Vehicles and other supplies to disabled people (vehicles only)”. This includes the cost of VAT reliefs for supplies of vehicles to disabled people, including but not limited to Motability.
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