'An attack on PIP claimants': What the Motability tax changes mean for drivers

Rachel Reeves is launching a tax crackdown on the Motability scheme, which could push up costs for disabled benefits claimants .

The Chancellor is ending some tax reliefs worth around £100m a year to the scheme which provides cars to disabled people at the Budget .

It follows an announcement that the Motability scheme will stop offering luxury models such as BMWs, Audis and Mercedes “immediately” . New Feature

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Disabled motorists called the looming changes an “unfair and cruel attack” on benefits claimants, warning that extra costs from the tax changes would force some people out the scheme.

VAT on higher-value cars

Reeves was reportedly considering imposing full VAT on Motability Operations, the company which runs the scheme.