Written Question·Treasury·UIN 98552
Motability: Insurance Premium Tax
Tabled: 9 December 2025
Answered: 17 December 2025
Question
Vicky Foxcroft
Labour — Lewisham North
To ask the Chancellor of the Exchequer, what assessment her Department has made of the projected financial impact of the new 12% premium insurance rate for Motability leases on (a) Motability users and (b) the car industry.
Answer
Lucy RigbyAt Budget 2025, the government announced tax changes to the Motability scheme, which will save over £1 billion over the next five years. The VAT relief for top-up payments made to lease more expensive vehicles will be removed for new leases from 1 July 20...
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