Motability: Insurance Premium Tax
(asked on 13th October 2025) - View Source
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will ask HMRC to release a separate estimate of the cost of Motability’s Insurance Premium Tax exemption.
This question was answered on 21st October 2025
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.