"Rachel Reeves is expected to press ahead with scrapping about 300m in tax breaks for the Motability scheme that helps provide cars for disabled people, in a move likely to spark concerns among some Labour MPs. The Treasury was reported to have been considering axing tax breaks up to 1bn but savings will not be as high as that figure, with concerns among ministers that some policy options could have led to Motability's collapse."
"The Motability scheme allows disabled people to use their personal independence payment (Pip) benefit to lease new cars for three years. The scheme is run by a private company, overseen by a charitable foundation, that buys new cars then leases them to claimants for three years before selling them on. The changes due to be announced by Reeves at the budget are on top of a move by Motability to remove premium brands of car, such as BMW and Mercedes,"
The government will remove around 300m of tax breaks for the Motability scheme, including imposing an insurance premium tax and charging VAT on advance payments for higher-value cars. Treasury officials considered larger savings up to 1bn but judged those options unrealistic and potentially threatening to the scheme. The more drastic option of removing VAT exemptions on sales of former Motability vehicles will not be pursued due to concerns about its impact. Motability lets eligible disabled people use the enhanced mobility element of PIP to lease new cars for three years; premium brands account for about 40,000 of 800,000 vehicles.
Read at www.theguardian.com
Unable to calculate read time
Collection
[
|
...
]