Overview
- The Government confirmed VAT on Advance Payments and Insurance Premium Tax on Motability leases will take effect from July 2026.
- Motability estimates the average Advance Payment will rise by about £400 over a typical three‑year lease package.
- A new Special Investigations Unit with around 80 investigators will target misuse, with expanded data‑sharing with police and government.
- Premium marques such as BMW, Mercedes and Audi have been withdrawn for new customers, though current users can keep their cars until leases end.
- Existing leases and vehicles substantially designed or adapted for wheelchair or stretcher users will keep VAT and IPT reliefs, with means‑tested grants, 40–50 no‑upfront‑payment options and a formal disability impact assessment set to support affordability.