All disabled drivers in UK affected by Budget VED decision with new 2025 rule – Daily Express
The changes will come into effect from April 2026, but the new flexibilities will apply to any electric model registered from April 2025 onwards. The Treasury has claimed that the move would save drivers over a million motorists £440 per year. Experts at Mobility in Motion explained that the move will ensure that more adapted and suitably equipped electric vehicles will remain exempt from the supplement.
READ MORE: Blue Badge holders to benefit from major £37,000 scheme exemption
READ MORE: Older drivers above the age of 70 may have ‘certain adaptations’ fitted to cars
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Matt Fieldhouse, Group Managing Director at Mobility in Motion, said: “The decision to raise the VED Expensive Car Supplement threshold for zero-emission vehicles is another welcome step, giving disabled drivers more room to choose the right electric vehicle for their needs, particularly those who require specialist adaptations.”
At the Budget, the Chancellor also confirmed that changes would be made to the Motability scheme, with some of the richest models in the range axed. Updates would also see VAT relief used to lease more expensive vehicles removed in a major update to the scheme.
However, the Budget confirmed that VAT reliefs on weekly lease costs and vehicle resale will remain in place, Meanwhile, they added that tax changes “will not apply to vehicles designed for, or substantially and permanently adapted for, wheelchair or stretcher users”.
The Budget added: “These tax changes ensure Motability can continue to deliver for its customers, for example through the continued provision of a broad range of vehicle models available without any top-up payments. Disability benefit payments and their eligibility will remain unaffected by these changes.”
The move means that all disabled drivers who meet the eligibility criteria can continue to benefit from VAT exemption on specific vehicle adaptations. This remains in place regardless of whether motorists qualify for the Motability Scheme.
Matt welcomed the news, adding: “This is the right decision for disabled people. The continuation of VAT relief brings welcome stability and ensures that those who rely on adapted vehicles can continue to access essential mobility support.
“Maintaining this relief is vital, and we are pleased to see the government recognise its importance.”
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