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News · 1 July 2026

Motability scheme tax changes start this week

Motability scheme tax changes start this week

Unsplash / Quilia

New tax changes for the Motability Scheme began on 1 July 2026, affecting new leases on vehicles. The UK government's changes mean VAT and Insurance Premium Tax will now apply to these leases. This will impact families who use the scheme to transport children to school and college.

Reported by news.motability.co.uk · How we write briefs

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