Published 25 June 2026
Disabled drivers in Scotland will not be affected by the Motability Scheme tax and mileage changes due to take effect across the rest of the UK from 1 July 2026. That is because the scheme in Scotland operates under a separate arrangement known as the Accessible Vehicles and Equipment Scheme (AVES), which sits outside the changes announced for England, Wales and Northern Ireland.
The wider reforms have attracted significant attention. From 1 July 2026, VAT at 20 per cent will for the first time apply to advance payments, excess mileage charges and early termination fees on new Motability leases, and a 12 per cent Insurance Premium Tax will be added to insurance within the lease. Motability Operations expects the average advance payment to rise by around £400, although it is absorbing much of the cost. The official position is explained by the Motability Foundation and in Motability’s own briefing.
New leases starting from July will also carry a mileage allowance of 10,000 miles a year, equivalent to 30,000 miles over a standard three-year lease, with an excess fee of 25p per mile beyond that. Crucially, these terms apply only to new applications and lease starts on or after 1 July 2026. Anyone already on the scheme, or who places an order before that date, keeps their existing terms.
Because AVES in Scotland runs under a distinct agreement, Scottish customers are insulated from these specific changes for now. This regional difference is an important reminder that mobility support is not always uniform across the UK, and that the details of any scheme can depend on where you live. Disabled motorists in Scotland should still check directly with their provider to confirm how their own arrangement works.
For families weighing up their options, the Motability route remains only one way to fund a vehicle or powered mobility equipment. Those who do not qualify, or who prefer to buy outright, may find that a mobility scooter or powered wheelchair better suits shorter local journeys, often at a fraction of the cost of running a car.
If the July changes affect you, it is worth reviewing your needs now rather than later. Consider whether an order placed before the deadline would protect your current terms, and look at the full range of mobility aids that could support your independence. You can also use our directory to find a mobility company for advice on equipment beyond the Motability Scheme.
Related guides on Review Mobility
Published 25 June 2026