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The Motability Scheme has announced some upcoming changes that will take effect from 1 July 2026.
At Desira, we understand that any changes to a programme as important as Motability may raise questions and concerns. The good news is that if you're currently enjoying a Motability lease, nothing is changing right now.
These updates will only apply to new vehicle orders placed from 1 July 2026 onwards, and the core benefits that make the Scheme so valuable will remain in place.
Visit your nearest Desira dealership or contact our Motability Specialists to discuss your options and receive personalised advice ahead of your next lease.
| Car Application Submitted | Before 1st July 2026 | Before 1st July 2026 | On / After 1st July 2026 |
| Handover Date | Before 1st July 2026 | On / After 1st July 2026 | On / After 1st July 2026 |
| VAT on Advance Payments (APs) | Zero rate | Standard rate | Standard rate |
| VAT on Some In-life Costs | Zero rate | Standard rate | Standard rate |
| Mileage | 20,000 Per year | 20,000 Per year | 10,000 Per year |
| Excess Mileage Charge | 5p Per mile (Zero rate VAT) | 6p Per mIle (Inclusive of VAT) | 25p Per mile (Inclusive of VAT) |
| Tyres | 8 Replacemnets for 3 year lease | 8 Replacemnets for 3 year lease | 6 Replacemnets for 3 year lease |
| EU Breakdown Cover | Included free of charge | Included free of charge | Available with admin fee |
The changes follow new government tax measures that will introduce VAT and Insurance Premium Tax (IPT) on most new Motability leases from July 2026.
Motability has reviewed its package to help keep the Scheme sustainable and affordable for customers in the years ahead, while maintaining the all-inclusive benefits that so many people rely on every day.
No. If you're already on the Motability Scheme, your current agreement will remain exactly the same until it's time to renew your vehicle.
There's no need to take any immediate action.
When your renewal date approaches, our team will be here to help you understand any changes that may apply to your next vehicle.
At Desira, we're proud to support thousands of Motability customers across our dealerships.
We know that choosing the right vehicle is about much more than getting from A to B – it's about maintaining independence, confidence and freedom in your everyday life.
If you have any questions about how these changes could affect you, our dedicated Motability Specialists are here to help.
Whether you're an existing customer approaching renewal or you're considering joining the Scheme for the first time, we'll guide you through every step of the process and help you find the vehicle that's right for you.
