Written Question·Treasury·UIN 94652

Motability: Tax Allowances

Tabled: 26 November 2025
Answered: 4 December 2025

Question

Stuart Andrew

ConservativeDaventry

To ask the Chancellor of the Exchequer, with reference to the Autumn Budget 2025, which tax reliefs for Motability and other qualifying schemes she plans to (a) withdraw and (b) amend; and what assessment her Department has made of the potential impact of

Answer

Dan Tomlinson
At 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 July 2026, a...

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