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Road Tax exemption/reduction and VAT relief on vehicle purchase

If you are in receipt of the mobility component of DLA or PIP you may be able to claim exemption or reduction to the road tax for your vehicle.
If you are a wheelchair user who needs a permanently and substantially adapted vehicle you may be able to claim VAT relief on the purchase price of the new vehicle.

Road Tax exemption

If you are getting a car through the Motability scheme it would automatically be exempt from road tax but if you already have a private vehicle that is road tax exempt you would need to discuss this with Motability (0300 456 4566) as you can only have one vehicle tax exemption at any one time.

You can apply for exemption from paying road tax if you are in receipt of:

To claim the exemption or reduction the vehicle must be :

  • Registered in the disabled person’s name or their nominated driver’s name.
  • It must be only be used for the disabled person’s personal needs. That means the vehicle can’t be used by the nominated driver for their own personal use.

You can only have one vehicle tax exemption or reduction at any one time.

For details see the DVLA information sheet “How to apply for free disabled tax”

Road Tax reduction

You can apply for a 50% reduction in road tax if you are in receipt of:

To claim the 50% reduction the vehicle must be :

  • Registered in the disabled person’s name or their nominated driver’s name.
  • It must be only be used for the disabled person’s personal needs. That means the vehicle can’t be used by the nominated driver for their own personal use.

You can only have one vehicle tax exemption or reduction at any one time.

For details see the GOV.UK document “Financial help if you’re disabled”

VAT relief on vehicle purchase

You can purchase, a motor vehicle VAT- free when all the following conditions are met:

  • the motor vehicle is supplied to a disabled person who normally uses a wheelchair to be mobile.
  • the vehicle is permanently and substantially adapted.
  • the adapted motor vehicle is for the domestic or personal use of the disabled wheelchair user, and the supplier has been given a completed declaration, form VAT1615A, which confirms eligibility.

Definition of ‘wheelchair’ and ‘wheelchair user’

In legal terms, a wheelchair is a chair on wheels for disabled people, which is either manually propelled or electrically powered. A mobility scooter is not a wheelchair for VAT purposes. A wheelchair user is any disabled person who normally uses a wheelchair in order to be mobile. A person who occasionally uses a wheelchair is not eligible.

For further information please see the HMRC leaflet about purchasing zero-rated adapted vehicles for;