If you or a family member rely upon the Motability Scheme to get about, you need to be aware of new rules being applied as from 1 July 2026.
This follows from changes made by the Government - VAT and Insurance Premium Tax will apply to most new leases - which, say Motability, will make it more expensive to deliver the scheme.
These rules apply to new orders placed on or after 1 July 2026. Existing customers are not immediately affected until they renew their lease.
There have been concerns expressed by many users dependent upon the scheme, but Motability say: “We’ve taken careful steps to manage these additional costs so we can keep the Scheme affordable and sustainable for the long term.”
Key 2026 Motability Rule Changes
• Mileage Cap: Standard car leases are limited to 30,000 miles over three years, while Wheelchair Accessible Vehicles (WAVs) are capped at 50,000 miles over five years.
• Excess Mileage Fees: Fees for exceeding the limit increase to 25p per mile, up from 5p.
• Tyre Replacement: Allowances are reduced to a maximum of six tyres for a three-year lease (four for damage) and 10 tyres for a five-year WAV lease (six for damage).
• Mandatory Black Box: Drivers aged under 30 must have "Drive Smart" black box telematics fitted to track driving behaviour.
• Increased Costs: Due to the removal of tax reliefs, VAT and Insurance Premium Tax (IPT) will apply to new leases, which is expected to raise average Advance Payments.
• EU Travel: A VE103 form will be required, and an administration fee will apply for taking vehicles into the EU.
• Certain premium brands have been removed from the scheme.
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