VAT free cars for disabled people?

peterg1965

Is it possible to buy a brand new car at zero rate VAT for a disabled person? I know that Motability lease cars on zero rate VAT but wondered whether this is available to individuals as well as Charities. Thanks.

Cute_'n'_Quirky

I am fairly certain that to get VAT exemption on cars, the car has to have been adapted for disability in some way, not just that the person is in receipt of DLA.

Bean_Counter

As with most VAT things, this can get pretty complicated. To summarise what I understand, cars can be zero rated if they have been designed or substantially and permanently adapted for the carriage of a disabled person in a wheelchair or on a stretcher. It also has to be for domestic & personal use only.

Zero rating can also apply to some letting and subsequent sale, but in practice only Motability vehicles meet all the relevant conditions.

VAT Notice 701/59 offers further advice. The link is:

http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageVAT_ShowContent&id=HMCE_CL_000128&propertyType=document

Hope this helps.