Written Question·Treasury·UIN 104080

Motability: Insurance Premium Tax

Tabled: 7 January 2026
Answered: 13 January 2026
Named Day

Question

Neil Duncan-Jordan

LabourPoole

To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of limiting the relief from insurance premium under paragraph 3 of Schedule 7A to the Finance Act 1994 on disabled people.

Answer

Dan Tomlinson
At Budget 2025 the government announced reforms 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 July 2026, and ...

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