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Motability: Insurance and VAT

Asked by Susan MurrayLiberal DemocratTreasuryTabled Answered 25 June 2026UIN 11072

The question

To ask the Chancellor of the Exchequer, what discussions she has had with Motability on the Accessible Vehicles and Equipment Scheme following the changes to VAT and Insurance Premium Tax reliefs for qualifying motor vehicle leasing schemes.

Answered by Dan Tomlinson

Both prior to and following the announcement of tax changes to the Motability Scheme at Budget 2025, the Government has engaged closely with the Motability Foundation to understand in depth how tax changes would impact the Motability Scheme and their customers.

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