The UK Government has announced tax changes that affect the Motability Scheme.
From Wednesday 1 July 2026, VAT and Insurance Premium Tax will apply to most new leases. This means it will cost more to deliver the Scheme.
We’re making careful changes to protect customers and keep the Scheme sustainable for the long term.
Last updated: 11 June 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 applications on or after 1 July 2026.
The changes we announced to the Motability Scheme lease package will not apply to you from 1 July 2026. This is because the Scheme in Scotland operates under a separate agreement called the Accessible Vehicles and Equipment Scheme (AVES).
We’re working with the Scottish Government to understand how these changes may affect AVES in the future.
You can continue to order a vehicle as normal. Your all-inclusive package remains the same.
We’ll contact you as soon as we have more information.
Some Social Security Scotland customers may qualify for a VAT concession. 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.
