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Today’s Top Headlines

UK Disabled Drivers Face New VAT Hit 'Unduly,' Charity Says

by Jason Gorringe,, London

16 February 2017

A change to UK value-added tax rules to prevent abuse of a concession could result in persons with disabilities incurring additional costs and having to use unsuitable equipment, campaigners have said.

From April 1, 2017, the Government will restrict the availability of zero-rate value-added tax for the purchase of adapted motor vehicles for eligible persons with disabilities to one car every three years.

The change follows abuse of this relief in the past, with some people purchasing numerous adapted vehicles in a single year, removing the adaptations, and then selling the vehicles on for a profit.

The Low Incomes Tax Reform Group (LITRG) said that HM Revenue and Customs should instead improve the administration of the existing relief by gathering and matching data from car dealers and licensing authorities, using modern technology, and then taking compliance action.

"It seems unduly harsh that a disabled person should be denied tax relief on the extra costs they incur when changing their motor vehicle, for instance in a simple situation such as their family having grown so that they require a larger vehicle," said Chairman Anthony Thomas.

TAGS: compliance | tax | value added tax (VAT) | law | United Kingdom | licensing

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