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HMRC internal manual

VAT Relief for Disabled People Manual

From
HM Revenue & Customs
Updated
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Motor vehicles [items 2(f) and 2A]: who is eligible for VAT relief?

Items 2(f) and 2A read as follows:

  1. The supply to a handicapped person for domestic or his personal use, or to a charity for making available to handicapped persons by sale or otherwise, for domestic or their personal use, of -

(f) motor vehicles designed or substantially and permanently adapted for the carriage of a person in a wheelchair or on a stretcher and of no more than 11 other persons;

2A. The supply of a qualifying motor vehicle -

(a) to a handicapped person -

(i) who usually uses a wheelchair, or

(ii) who is usually carried on a stretcher,

for domestic or his personal use; or

(b) to a charity for making available to such a handicapped person by sale or otherwise, for domestic or his personal use.

Legal Notes

5L. A ‘qualifying motor vehicle’ for the purpose of item 2A is a motor vehicle (other than a motor vehicle capable of carrying more than 12 persons including the driver) -

(a) that is designed or substantially and permanently adapted to enable a handicapped person -

(i) who usually uses a wheelchair, or

(ii) who is usually carried on a stretcher,

to enter, and drive or be otherwise be carried in, the motor vehicle; or

(b) that by reason of its design, or being substantially and permanently adapted, includes features whose design is such that their sole purpose is to allow a wheelchair used by a handicapped person to be carried in or on the motor vehicle.

VAT relief under items 2(f) and 2A applies the zero rate to:

  • adapted vehicles purchased by disabled wheelchair or stretcher users;
  • adapted vehicles purchased by certain eligible charities; and
  • adapted vehicles purchased by certain eligible bodies under the Value Added Tax Act 1994, Schedule 8, Group 15.

See VRDP05000 for the basic pre-conditions for zero-rating which must be satisfied.

VAT relief under item 3 (see VRDP43000 - ‘The law’) applies the zero rate to adaptations to a vehicle to suit a disabled person’s condition.