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Written question asked by Joe Robertson (Conservative) on Thursday, 27 March 2025, in the House of Commons. It was due for an answer on Monday, 7 April 2025 (named day). It was answered by James Murray (Labour) on Monday, 7 April 2025 on behalf of the Treasury.


Motability: Insurance Premium Tax and VAT Zero Rating

Question

To ask the Chancellor of the Exchequer, what estimate she has made of the total value of the (a) VAT zero-rating and (b) Insurance Premium Tax concession applied to vehicles (i) purchased or (ii) leased as part of the Motability Scheme from the most recent data available.

Answer

HMRC’s published tax relief statistics provide an estimate of the cost of the Zero Rate of VAT for Vehicles and other supplies to disabled people (vehicles only) of £1,210 million in 2023-24, see Non-structural tax reliefs - GOV.UK. Most of this cost represents vehicles in the Motability scheme, but it also includes other sales of adapted vehicles to disabled people.


Secondary information

Type
Written question
Reference
42181
Session
2024-26
Subjects
Insurance premium tax Motability VAT zero rating
Contains statistics
Yes
Link
View this Written question on www.parliament.uk