Motability: VAT
The question
To ask the Secretary of State for Work and Pensions, whether she plans to publish a consultation on the VAT treatment of Motability scheme vehicles.
Answered by Sir Stephen Timms
The government recognises the importance of engaging with tax payers on the development of tax policy, however, as set out in the tax policy making principles, the need to deliver change quickly means a consultation is not always practicable. Prior to announcing tax changes to the Motability Scheme at Budget 2025, the government instead engaged closely with the Motability Foundation to understand in depth how tax changes would impact the Motability Scheme and their customers. There are no plans for further consultation on the measure.
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