VAT for disability

[Guest Trevor]

If a new vehicle is bought less VAT because of a disability, what happens when this vehicle is sold on or traded in, does the VAT have to be paid by either vendor or buyer. Even if sold privately.

[Guest Will Redfearn Wirral Motorhome Club]

I understand that if it is in the period prior to the first MOT a proportion has to be repaid. If you sell after 2 years ownership you would pay 1 years worth of vat, you may also have to pay the vat recovered on servicing costs. The Customs and Excise vat office would be able to help. However there is no obligation to notify vat that you have sold the vehicle, though in this modern age there may be a note on the vehicles computer file at DVLA that it is vat free vehicle,which may be accessed when you send transfer details.

[Guest David]

~Trevor, Re VAT on mobility vehicle, I think the new owner will have to re register the vehicle. My daughter bought a car second hand that had previously been owned by a diabled driver, and had to re register it. Check with VAT office and DVLA, its not worth the bother if they catch up with you. David

[Guest Mike Chapman]

A motorhome will be zero rated for VAT if the purchaser is disabled and the vehicle is adapted for disability. If the vehicle is sold on to another disabled person then it remains zero rated. If the vehicle is sold to a non-disabled person or to a dealer who then sells the vehicle on to a non-disabled person VAT will be due on the purchase price. This depends on whether the original dealer paid VAT on the vehicle when he purchased it from the coachbuilder. The vehicle does not have to be re-registered but the V5 log book may need to be changed to remove DISABLED from the vehicle tax class. It is obvious that the Revenue close the loophole where someone can buy a vehicle much cheaper by avoiding VAT and then sell it on for the full price at a large profit and pay no VAT. There is no known intention to remove VAT zero rating from disabled adapted vehicles. However that is not to say that our Chancellor Friend will not change this status in the future. Regards, Mike Chapman