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Dept for Transport

Answer

Paul Holmes: To ask the Secretary of State for Transport how many cars receive road tax exemption through the Motability scheme; how much this exemption costs; what the financial value is of the exemption; how many of the exempted cars are registered to people aged 65 years and over; what plans he has to extend the exemptions to adapted cars bought by people disabled after their 65 birthday; and if he will estimate the cost of extending the exemptions. [178459] Mr. Jamieson: This exemption cost the Exchequer an estimated £155 million in 2002-2003. It can be worth anything between £15 and £2,585 per annum depending on the type of vehicle concerned. There are currently around 375,000 vehicles in the Motability fleet (either contract hire or hire purchase). About 26 per cent. of these are in the 65+ age group. There are no plans to change the way the exemption works at present. However, the Chancellor keeps all taxation policy under review and any changes are announced in the context of his Budget statement after considering relevant economic, social and environmental factors.

Secondary information

Type

Written question

Reference

178459; 422 c1531W

Session

2003-04

Subjects

Disability Costs Cars Exemptions Excise duties Pensioners Motor vehicles Older people Motability

Contains statistics

Yes

Link

View this Written question on www.publications.parliament.uk