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Motability Tax Changes Explained | Glasgow News
Description
The Motability scheme is undergoing major tax changes to save a billion pounds by 2030, targeting luxury vehicles and introducing VAT on upfront payments and Insurance Premium Tax on all new leases—aiming to balance taxpayer funds with continued support for disabled users. While critics raised concerns over accessibility of high-end cars, Chancellor Rachel Reeves’ reforms are part of a broader effort to make the scheme more fiscally sustainable without compromising independence for those who rely on it. Motability Operations acknowledges higher operating costs but insists the scheme still offers value, including zero-deposit options, and remains committed to helping disabled people stay connected to work, healthcare, and daily life.
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