Isle of Man Treasury Announces Removal of VAT Relief on Top-Up Payments for Motability Vehicles

The Isle of Man Treasury April 29 announced the removal, from July 1, of the VAT relief on top-up payments for Motability vehicles, which allowed individuals who were in receipt of the mobility component of the Disability Living Allowance to lease a vehicle at a zero percent VAT rate, including any top-up payments made where individuals wanted to lease a higher value vehicle. The announcement also includes that: 1) as of July 1, the top-up payments will become subject to the standard 20 percent VAT rate; and 2) the removal of the VAT relief on top-up payments will not impact ...