New rules for VAT relief on substantially and permanently adapted motor vehicles for disabled wheelchair users, which are intended to end the abuse of the current scheme, come into force on 1 April 2017.
The rules will specify a limit on the number of vehicles within a specified period of time that an individual can purchase, and require an electronic or written submission of the eligibility declaration form published on Gov.uk. Motor dealers selling adapted motor vehicles under this relief will also be required to provide sales information to HMRC within a specified time frame. Individuals who are in breach of these requirements may be denied zero rate relief or may be subject to a section 62 Value Added Tax Act (VATA) 1994 penalty if the declaration they make is incorrect.
The new rules include provisions allowing exceptions to the limit on the number of cars purchased, for example in cases where the medical needs of the wheelchair user change.
Further information can be found on Gov.uk here.