Changes to VAT Exemption for Wheelchair Accessible Vehicles

Following a review and a public consultation over the VAT treatment of adapted motor vehicles by HM Revenue and Customs ( HMRC ), a number of changes were made to the legislation with effect from 1 April 2017. These include the introduction of a limit on the number of vehicles that can be purchased under the relief, with an eligible individual now being able to purchase only one vehicle that meets the qualifying conditions every 3 years.

That means if you as a private individual or charity intend to purchase more than one new Wheelchair Accessible Vehicle in a 3 year span, you may not qualify for VAT relief on each purchase. However some exemptions may apply to this ruling, for example if your vehicle is stolen or destroyed, or if your circumstances change dictating the need for a new vehicle.

More information regarding these changes can be found at the HMRC website:

https://www.gov.uk/government/publications/vat-notice-1002-adapted-motor-vehicles-for-disabled-people-and-charities/vat-notice-1002-adapted-motor-vehicles-for-disabled-people-and-charities