Information on buying a TAX FREE CAR if Disabled Please

Does anyone know anything about buying your own car without paying VAT if you are disabled and on High Rate Care and Mobility DLA?
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Comments

  • savemoney
    savemoney Posts: 18,125 Forumite
    Part of the Furniture 10,000 Posts
    Yes you need a exemption certificate DLA404 which then you can apply for free tax disc providing its used for the disabled person passenger or driver

    http://www.direct.gov.uk/en/Motoring/OwningAVehicle/HowToTaxYourVehicle/DG_4022121
  • Saversue
    Saversue Posts: 1,918 Forumite
    Part of the Furniture Combo Breaker
    edited 13 February 2010 at 11:59PM
    savemoney wrote: »
    Yes you need a exemption certificate DLA404 which then you can apply for free tax disc providing its used for the disabled person passenger or driver

    http://www.direct.gov.uk/en/Motoring/OwningAVehicle/HowToTaxYourVehicle/DG_4022121

    Thanks for the reply, but it's not the annual road tax I am asking about. I already get that. It's something I read about not paying VAT when you purchase a new car, that would be a saving of 20 per cent off the cost.

    Actually I have just found the answer on VAT Exemtion for Diabled People, sorry I don't now how to paste-in a website. Only people who use a stretcher or wheelchair are exempt from VAT.
  • wazza
    wazza Posts: 2,595 Forumite
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    i believe you can avoid paying the tax if you are wheelchair bound on a new car.
    Problem with having access to internet is that i get asked by many to solve their problems :( Well at least i learn something on the way :D
  • savemoney
    savemoney Posts: 18,125 Forumite
    Part of the Furniture 10,000 Posts
    Opps sorry teach me for skipping

    I was in a rush at time, snack wrists ;)
  • TOBRUK
    TOBRUK Posts: 2,343 Forumite
    From the directgov site
    VAT relief on products and services for disabled people

    http://www.direct.gov.uk/en/DisabledPeople/FinancialSupport/Taxreliefandreductions/DG_10028495
  • Hmmm.... Directgov says that the car is VAT exempt for wheelchair users if:

    you buy a motor vehicle that has been substantially and permanently adapted for your personal use

    They don't define "substantially", but they do go on to say that motability is exempt. OP; any reason you don't want to get a vehicle from motability on the hire purchase scheme?

    Anyone any thoughts on what "substantially" means?
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  • Indie_Kid
    Indie_Kid Posts: 23,097 Forumite
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    Anyone any thoughts on what "substantially" means?

    I would've though any adaptions counted? IE, hand controls, lifts, etc.
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  • TOBRUK
    TOBRUK Posts: 2,343 Forumite
    I bought my own car a few years ago and had hand adaptions fitted (out of my own pocket) and didn't know anything about VAT exemptions for the disabled. Last year the hand controls stopped working and had to contact on of the centres to see what they could do. They said that they could try and get it fixed but if they couldn't I would have to buy a new one. The price of a new one was £1000 before being fitted :eek: I asked them to try and fix mine - luckily they managed to get mine fixed and cost me £375. When I went to pay they gave me a form to sign and it was for VAT exemption, so I didn't pay VAT.

    I don't think (as I have understood it) that I would be able to buy a new car and be VAT exempt with hand controls, but I might be wrong - very interesting.
  • You might find that some dealers will offer their own schemes for the disabled.

    My local dealer offered about 5% off the purchase price, if I remember correctly.
    It wasn't advertised, and the fact that I had a blue badge come into conversation, and the discount was offered.
    It's not as much as the full rate of VAT, but it was still worth having.

    If you don't ask, you don't get.

    Regards
    Munchie
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