Currently, individuals who are in receipt of the mobility component of the Disability Living Allowance can lease a vehicle at the zero-rate of VAT, including any top-up payments made where the individual wishes to lease a higher value vehicle.
From 1 July 2026, the top-up payments will become subject to the standard rate of VAT (20%).
The removal of VAT relief on top‑up payments will not impact individuals who lease vehicles that are designed or permanently adapted for wheelchair or stretcher users.
Under the Customs and Excise Agreement 1979, the Island is required to maintain consistency with UK legislation in the administration of VAT and other common duties.
