The UK Government announced tax changes in the Autumn Budget that affect the Motability Scheme.
VAT and Insurance Premium tax will now apply to most new leases ordered from 1 July 2026.
We've made careful changes to protect customers and keep the Scheme sustainable for the long term.
Last updated: 14 July 2026
We’ve taken careful steps to manage these additional costs so we can keep the Scheme affordable and sustainable for the long term. Our priority has been to: • Protect what matters most in your lease • Reduce the impact of the tax changes • Maintain the good value of the Scheme
Letter from Andrew Miller, CEOThese updates apply to new orders on or after Wednesday 1 July 2026.
Did you know? On average, customers drive around 7,500 miles a year.
If you need to drive more than your allowance, you can pay for extra mileage. We might be able to support you if you have exceptional circumstances.
Did you know? Most customers replace two or fewer tyres during a three-year lease.
Did you know? Fewer than 1% of customers used breakdown cover abroad in 2025.
Nothing is changing for you right now.
These updates only apply to new orders placed on or after 1 July 2026.
The changes we announced to the Motability Scheme lease package will apply to you from 1 September 2026. This is because the Scheme in Scotland operates under a separate agreement called the Accessible Vehicles and Equipment Scheme (AVES).
Your all-inclusive package remains the same.
Social Security Scotland customers who drive a Wheelchair Accessible Vehicle (WAVWheelchair Accessible Vehicle) may qualify for VAT relief if the vehicle is used by someone who is usually a wheelchair or stretcher user. If you’re eligible, your dealer will explain what you need to do when you order your vehicle.
For more information about these changes, read our latest Social Security Scotland update.
Your lease will still include:
We stay committed to offering an all-inclusive package that gives you confidence and peace of mind.
We’ve had to make decisions in response to tax changes, in order to protect the Scheme now and in the future.
If you’re unsure how these changes affect you, we’re here to help.
