»Ê¹ÚÌåÓýapp

If you are asked whether similar schemes for disabled drivers may be treated as exempt you should reply along the following lines.

»Ê¹ÚÌåÓýapp scheme applies only to Motability. If pressed to justify this you should explain as follows:

• As a basic principle when IPT was introduced it was decided that it should apply at a low rate across as broad a base as possible.
• Targeting tax reliefs at specific groups or categories of taxpayers is potentially very complex.
• In Motability’s case the argument for tax relief was not about providing exemption for disabled drivers (for the reasons given above), but rather about Motability’s entirely unique position: it carries one block policy covering some 160,000 disabled drivers. »Ê¹ÚÌåÓýapp potential IPT liability of this unique policy was thus very significant indeed.
• »Ê¹ÚÌåÓýapp principal factor in granting an exemption targeted at Motability’s block policy was its status as a potential taxpayer rather than the status, as such, of the disabled drivers covered under the scheme.
• An exemption targeted only at Motability’s block policy is not inconsistent with the basic approach adopted overall to the scope of the tax in that, as an exemption only applying to a single block policy, it is clearly ring fenced and so readily administered.
• Only the contract-hire scheme operated by Motability (under which disabled drivers lease new cars) is covered by the exemption. »Ê¹ÚÌåÓýapp exemption does not extend to other disabled drivers who may use Motability finance to help buy a car of their own, nor does it extend more generally to other disabled drivers.