Motability, Blue Badges and disabled motoring
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VAT relief on used car purchase

neilmclneilmcl Member Posts: 6 Listener
Ignore - duplicate post.


  • neilmclneilmcl Member Posts: 6 Listener
    I took my dad, who is 77 and a recent above knee amputee, out to see a used wheelchair adapted vehicle being sold by a small, used car dealership in the Midlands. Having viewed the WAV and taking it for a test drive we agreed a good deal on it and put down a deposit. During this I brought up the subject of VAT relief on the sale but I couldn't get anywhere with the salesman as I don't think he understood the rules, he kept on insisting that this was our responsibility to sort out and claim back, and then there was no separate VAT element to the sale etc. As I said this was their first WAV sale and they didn't seem to know the rules regarding VAT relief for disabled drivers and vehicles.

    I'm going to speak to the owner on Monday as well as giving HMRC a call but can anyone clarify the situation regarding used car sales and VAT and if they've experienced this sort of thing themselves with a used car dealer. Thanks 
  • wilkowilko Member Posts: 2,284 Disability Gamechanger
    Hello and welcome, I have just goggled the question and I sujest you do the same and you will get the official government site with all the details and information you require regarding Vat on new or used cars for disabled drivers. Hope this helps having bought three low milage exmobility cars last one an automatic under 10000 miles. 
  • neilmclneilmcl Member Posts: 6 Listener
    edited December 2019
    I've been on the the official HMRC site to look at the information myself but doing this and trying to persuade the dealership to play ball is another thing entirely. For some reason some companies seem to think VAT is their own money and asking for it to be removed is somehow taking food out of their mouths.
  • Namaa_ScopeNamaa_Scope Member Posts: 34 Connected
    Hi @neilmcl
     I am sorry that you had that experience, but it is your dad's right to get VAT exemption,  and we explain how you get VAT exemption when purchasing a vehicle and after purchasing a vehicle here
    Advice and support driving and motability

    @exdvr is absolutely right, but if the care dealer is refusing to cooperate with you, you can purchase the vehicle and reclaim the VAT back, our driving and motability advice and support shows you how to do that. 

    All of the best of luck negotiating with the car dealer today.
  • neilmclneilmcl Member Posts: 6 Listener
    Hi @Namaa_Scope, unfortunately the dealer is convinced that VAT that he pays on the VAT Margin scheme isn't applicable and so he wont take it off the price of the vehicle, he went away and came back saying he got that advice from the HMRC but I'm not so sure. How does my dad reclaim the VAT, the only thing I can see from your link is the VAT declaration form but that doesn't help my dad reclaim the VAT as he needs to give that to the seller.
  • Namaa_ScopeNamaa_Scope Member Posts: 34 Connected
    edited December 2019

    So sorry about that, 

    This link is for the form to claim back the VAT
    Claim VAT relief on an adopted motor

    and this is the link for the eligibility declaration form
    Eligibility declaration by a disabled person for VAT relief 

    If the seller continues to refuse your dad's exemption from VAT, please do get in touch with HMRC, VAT section by phone. 

    HMRC's telephone number is 0300 200 3700 
    When you call,

    please note that their helpline uses speech recognition software, so you will be asked why you are calling HMRC. Try to answer with short phrases and words, for example:
    • “question about VAT relief for disabled people”

    Their opening times are:  Monday to Friday: 8am to 6pm and they are closed on weekends and bank holidays. 

    Please let me know how you get on. 

  • neilmclneilmcl Member Posts: 6 Listener
    I've spoken to the HMRC and even they advised that as it's a used car and the dealer uses the VAT margin scheme my dad's not entitled to that portion of the VAT. He would only be allowed to have it removed if the VAT was applied to the sales price. Sounds a bit too complicated and I don't think he's going to bother making a fuss about it.

    Another thing has just come now too as he was trying to get it taxed online. As I mentioned earlier my dad is 77 and therefore not entitled to any disability benefit that would enable him to get free road tax so we have to now get the tax class for the vehicle changed. Personally I can't understand the rationale behind not allowing anyone over retirement age access to disability benefits.
  • Namaa_ScopeNamaa_Scope Member Posts: 34 Connected
    edited December 2019

    So sorry that wasn't much help,  

    I had the same experience with my dad who was 73,  and was not entitled to disability benefits too, but I managed to get him a blue badge and then from there I managed to get other motoring benefits, such as exemption from road tax and inner London charges. 

    This money advice site is helpful in listing what you can get outside the benefits system. 
    Motability, blue badge scheme and discounted travel  

    If you chose, you can apply for a blue badge here 

    Apply for a blue badge scheme 

    I am so  sorry I couldn't help, I hope your dad is able to get his travel benefits with a blue badge.
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