Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if she will release the methodology and assumptions behind HMRC’s estimate that Motability’s VAT reliefs cost £1.21 billion in 2023-24.

HMRC publishes estimates of the costs of tax reliefs in its annual Non-structural tax relief statistics publication.

The last publication on 5 December 2024 showed an estimate and forecast for the financial years 2023-24 and 2024-25 of £1,210m for the relief “Vehicles and other supplies to disabled people (vehicles only)”. This includes the cost of VAT reliefs for supplies of vehicles to disabled people, including but not limited to Motability.