Neil Duncan-Jordan asked about new increased costs for some Motability users (Image: Parliament TV)

The Department for Work and Pensions has given an update after MPs raised concerns about the impact of tax changes announced in the Budget for Motability users. Minister of State (Department for Work and Pensions) Sir Stephen Timms earlier this week confirmed that next July some ‘tax reliefs’ will be removed. The government has decided to ban premium brands like BMW and Mercedes from being used.

The Government has confirmed that VAT will apply to Advance Payments and Insurance Premium Tax will apply to Scheme leases which will take effect from July 2026. Motability has said that the change will increase the cost of a lease on the Scheme and ‘we anticipate the average Advance Payment (upf

See Full Page