Since 2012 the Government have been reviewing how the relief could be reformed to prevent fraudulent abuse of the scheme. A consultation launched by HMRC in 2014 has led to new policies which will come into force next year. The changes will require that:
- Only one vehicle can be purchased by a disabled wheelchair user every three years subject to it being stolen, damaged or no longer suitable for use.
- Use of Gov.uk eligibility forms will become mandatory when claiming the relief
- Motor dealers will be required to send information on sales of VAT relief vehicles to HMRC. The information will be specified by a public notice. Further information and guidance on this is expected early next year.
- Penalties will apply for incorrect declaration, the equivalent to the standard rate of VAT chargeable. Where fraudulent intent can be established the individual can be prosecuted in a criminal court.
Further information can be found by clicking here.