How the VAT free scheme works

If you are a registered wheelchair user in the UK, then Orangewheels may be able to help you in your next new car lease, by not only finding you a great leasing rate on the car, but also allowing you to lease the car VAT free. Please be aware this is not part of the Motability scheme, this is an entirely separate zero-rate VAT arrangement through HM revenue and customs for customers who are leasing a brand new vehicle.

You can lease a new car VAT free in the UK if you meet ALL of the following criteria:

• The car is lease by a disabled person who normally uses a wheelchair to be get around.
• The vehicle is permanently and substantially adapted for the purpose, e.g. the fitment of hand controls. (more below)
• The vehicle is for personal use only of the disabled wheelchair user
• The leasing company is provided with a completed form VAT1615 declaration to confirm the users eligibility.

Please note that using a mobility scooter does not qualify and temporary use of a wheelchair e.g. for shopping trips or due to an injury like a broken leg also does not qualify.

Adaptations to the vehicle must be permanent and substantial, and specific to the users requirements, allowing the user to enter, exit or drive the vehicle when it would not otherwise be possible. Examples include:

• A swivelling seat
• A hoist to lift the user into the vehicle
• Push-Pull brake & accelerator hand controls
• A wheelchair box fitted to the back of the vehicle

Minor adaptations such as steering knobs do not qualify, or options such as automatic gearboxes, parking sensors, a roofrack or trailer do not qualify as they are general adaptations and not specifically designed for wheelchair use.

All of the leasing prices on our website can be toggled between personal and business use where the business use excludes VAT from the figures as VAT registered businesses are typically able to claim a percentage of the VAT back. This also means if you qualify for the scheme it's easy for you to see what the VAT free leasing cost will be by simply selecting 'Business Prices' on the toggle.

For further information and for the relevant declaration form, follow this link to the HMRC website: VAT relief on adapted motor vehicles for disabled people and charities (VAT Notice 1002).

And the link to the helpsheet:
HMRC VAT1615 Helpsheet.