Written Question·Treasury·UIN 87805
Motability: Insurance Premium Tax and VAT
Tabled: 4 November 2025
Answered: 13 November 2025
Question
Vicky Foxcroft
Labour — Lewisham North
To ask the Chancellor of the Exchequer, what assessment her Department has made of the impact of (a) VAT and (b) Insurance Premium Tax exemptions on the affordability of Motability Scheme advance payments.
Answer
Dan TomlinsonThe Motability Scheme allows those eligible for a qualifying mobility allowance to lease a new car, Wheelchair Accessible Vehicle, scooter or powered wheelchair. The Motability Scheme receives relief from VAT and Insurance Premium Tax. The level of advanc...
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