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HM Revenue and Customs Brief 35/12


HM Revenue and Customs -Tax Authorities

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Issued 11 December 2012

Purpose of this Brief

To note that, from 30 November 2012 HM Revenue & Customs (HMRC) is introducing a new voluntary scheme for motor and boat dealers. The purpose of the scheme is to gather information from traders about zero-rated sales of adapted motor vehicles and boats to disabled people.


All VAT-registered motor vehicle and boat dealers who make sales under the zero-rated, adapted motor vehicle or boat disability scheme.


The VAT zero rate relief for adapted motor vehicles and boats for wheelchair users allows regular wheelchair users to purchase a motor vehicle or boat that has been specifically designed or adapted to enable them to enter and drive (or otherwise be carried in) the vehicle at the zero rate of VAT, provided that the vehicle is for the domestic and personal use of the wheelchair user.

How will the scheme work?

This scheme for adapted motor vehicles and boats was announced at Budget 2012.

It is entirely voluntary. The aim of the scheme is to gather information from suppliers of vehicles and boats about the use of the VAT zero rate, on sales of motor vehicles and boats adapted for the use of wheelchair users.

Participating car dealerships and boat suppliers can provide information to HMRC by completing a survey form about their zero-rated motor vehicle and boat sales.

Why do you want us to provide additional information?

HMRC need further information in order to establish how often the relief is used, the types of adaptations required, the costs involved and the types of vehicles purchased.

How will this information be used?

Currently HMRC has very little information about how much the relief is used.

HMRC will use the information to establish general trends, values and numbers. In addition it will help HMRC gain a better understanding of the current use of the relief to assist to improve guidance.

Read more about the voluntary scheme

About the Author

Crown Copyright 2012.

A licence is needed to reproduce this article and has been republished for educational / informational purposes only. Article reproduced by permission of HM Revenue & Customs.

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Article Published/Sorted/Amended on Scopulus 2012-12-20 09:04:11 in Tax Articles

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