§ Mr. Freesonasked the Chancellor of the Exchequer if he will consider taking value added tax off the hire purchase of cars leased under Motability.
§ Sir Geoffrey HoweNo. Motability already benefits from a substantial VAT concession in that, exceptionally, input tax is deductible on cars which are bought for leasing through the organisation to disabled people. I could not justify giving additional VAT relief on the hire purchase or leasing of cars by Motability.