VAT relief rules on adapted motorhomes have been updated to offer dealers, manufacturers and customers greater clarification.
Rules stated previously that adaptations must be ‘substantial and permanent’ but dealers were generally unsure of what qualified under the rules. Because of this dealers were sometimes unwilling to sell adapted vehicles at zero VAT.
It is hoped the market will now be more accessible following new rules brought in which clearly state that it must be a ‘substantial and permanent adaptation’ to be eligible to be zero-rated, and supplied to a disabled person who normally uses a wheelchair for their mobility.
“A disabled person with a degenerative condition such as multiple sclerosis, who uses a wheelchair when their condition requires it, or a lower limb amputee is also eligible,” the National Caravan Council’s deputy director general, Alicia Dunne, told Out& About Live in a report.
“The rules are clear that a mobility scooter user or person who occasionally uses a wheelchair, say, for visiting a shopping centre, or someone who is temporarily disabled due to a condition such as a broken leg would not be eligible. It is good that HMRC has moved to remove any uncertainty in the regulations.”
New rules will include a time limit on the number of zero VAT-rated motorhomes that can be bought. A person eligible will only be able to buy once every three years.
Further to this, new mandatory customer eligibility declaration forms have been introduced by HMRC where a disabled person can claim zero-rated relief on adapted motorhomes.
Dealers of adapted motorhomes also need to provide information to HMRC about zero VAT-rated motorhomes sold.