This discussion has been closed.
Posted by Yabberdabberdoo (U4986028) on Friday, 21st July 2006
Hi. I'm starting to find out what sort of savings I can make on the purchase of a new car. I am a wheelchair user and my car has to be adapted for me to drive (hoist, etc).
I've been reading on the Customs & Excise website (just do a search for - VAT Notice 701/59 - that there are huge savings to be made with regard to VAT on, I believe (from reading the information on the website) with:
Purchase of a new vehicle
Repairs and Maintenance costs for the vehicle
Now, I must admit I knew about No. 2, but not about on the purchase (no car dealer has ever asked or implied I may be able to get the car VAT free, but I have never used Motability - although I do get higher rate DLA). Some people are telling me that the repairs and maintenance costs are only for the repair and maintenance of the adaptations?
Can anyone elighten me further?
Posted by UnflusterableTig (U3789091) on Friday, 21st July 2006
I have learned that some dealers offer a "discount" to people who hold blue badges and/or get mobility. I think this may be accross the board with all of them. It is a significant saving. Best to ask round and see who offers the best deal. Hyundai also have a 5 year warranty on their vehicles.
Also, if you are registered disabled you get free crossing of the Dartford Tunnel / bridge, not sure about the other toll crossings....
Posted by 3951911 (U3951911) on Friday, 21st July 2006
I've looked into this myself. As far as I can tell, VAT on the purchase price only applies if the car is provided to you by the dealer with the adaptations in place at the time of purchase. My interperatation of this is that the adaptations must be factory fitted but thats just my take on it. As for adaptations fitted to the car prior to collection, they should be sold to you net of VAT anyway. As for repairs I think VAT exemption would only apply to repairs on parts of the car that were disability related, in which case I dont think it applies.
I'm like you, I get DLA but dont get a car on motability, I do a high annual mileage therefore would get clobbered by the excess charges. However, I recently bought a Ford and I was able to purchase the car through them because of some special deal they do through motability/the inland revenue. This meant that I got a car with a list price of approx £15000 for approx £12500.
I can't remember the name of the scheme but if you go to your Ford main dealer, their motability specialist should be able to help, it's similar, i think, to the motability Hire Purchase scheme but the car is, basically, yours from the start and doesnt come with the perks like free servicing and insurance. However, I dont think the scheme is exclusive to Ford so you might have some luck with any main dealer
Posted by Lady_Bracknell (U1819465) on Friday, 21st July 2006
If you are a wheelchair user or a stretcher user and you buy a car which has been adapted for your personal use (either for you to drive or for you to travel in), that car will attract a zero-rating for VAT. In order for the car to qualify for zero-rating, the adaptation must be designed for your specific needs and be permanent (e.g. welded or bolted on) and substantial.
The same criteria apply to vehicles which are supplied on a lease or hire basis.
Zero-rating also applies if you buy a second-hand car which meets the same eligibility requirements as a new one would have to do in order to attract the relief from VAT.
If the vehicle was zero-rated on purchase, then all repairs and maintenance to that vehicle can also be zero-rated. But if the vehicle wasn't adapted until AFTER purchase (i.e. VAT was charged at the standard rate when it was sold to you), then the zero-rating will ONLY apply to repairs and maintenance of the adaptation/s. (This is probably why you are getting conflicting reports from the people you've been talking to.)
There is also VAT relief on vehicles which are leased under the Motability scheme, but that's a separate issue.
Posted by UnflusterableTig (U3789091) on Sunday, 23rd July 2006
A friend of mine managed to press for VAT off a camper van, stating that he needs access to hygiene and toilet facilities at all times. But it was hard work, and he "knew his stuff" to be able to push for this.
The Ouch! messageboard has now closed. Messages you have posted will remain archived.
The message board is currently closed for posting.
To continue the conversation visit Ouch's blog (bbc.co.uk/ouch) - now part of BBC News. There you'll find our podcast, regular blog entries and articles, community events, and links to where you can find us on Facebook and Twitter.
This messageboard is reactively moderated.
Find out more about this board's House Rules