2017 Changes to VAT relief on adapted motor vehicles for disabled wheelchair users

A guide to HMRC’s 2017 reforms to VAT relief on Wheelchair Adapted Vehicles (WAVs): why the rules changed, who qualifies, key limits, and dealer reporting.

In April 2017, HMRC introduced reforms to the VAT relief scheme for Wheelchair Adapted Vehicles (WAVs). The changes aimed to prevent abuse of the scheme and ensure only eligible disabled people benefit from the relief.

Why were the rules changed?

The government identified misuse of VAT relief, including claims on luxury vehicles or multiple vehicles not intended primarily for the disabled person’s use. HMRC tightened the rules to curb fraud and protect genuine claimants.

Key changes introduced in 2017

• Three-year purchase limit: Relief can be claimed on the purchase of an adapted vehicle only once every three years, unless circumstances materially change (e.g. the vehicle is stolen, written off, or no longer meets the person’s needs).
• Eligibility declaration: Customers must complete the official HMRC eligibility declaration form to confirm entitlement.
• Dealer reporting: Motor dealers must report VAT-relief sales to HMRC, providing specified details for compliance.

Who qualifies?

Relief is available where the vehicle is supplied for the domestic or personal use of a chronically sick or disabled person. It does not apply to general family use or to business purposes.

Penalties for misuse

Claiming VAT relief without entitlement, or giving false information on the declaration, is an offence. HMRC may issue financial penalties and can prosecute in serious cases.

Information courtesy of HMRC & Maun Motors.