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© 2026. The Purpl Co Limited. All rights reserved.
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© 2026. The Purpl Co Limited. All rights reserved.
12 min read
Written by
Georgina, Founder of Purpl
Published on
September 14, 2026
Last reviewed: 14 September 2026
Applies to: UK-wide
Written by: Georgina, Disability Expert and Founder of Purpl
Motability has reduced the standard mileage allowance for new leases to 30,000 miles over three years, increased the standard excess mileage charge to 25p per mile and introduced new tyre fair-use limits. The terms began on 1 July 2026 for most customers and on 1 September 2026 for customers receiving their allowance from Social Security Scotland.
If you already have a Motability vehicle under an earlier agreement, your existing mileage and tyre terms continue until that lease ends. The changes matter when you place your next order. This guide explains the new rules, the extra support available if disability-related journeys push your mileage higher, and what the UK Government’s VAT and Insurance Premium Tax changes really mean.
If the new terms make you question whether Motability still suits your needs, Purpl members can also save with selected accessible vehicle hire, subscription and adaptation specialists.
The main changes affect mileage, excess mileage charges, tyre replacements and the paperwork needed to take a leased vehicle abroad.
| Lease term | Previous terms | New terms |
|---|---|---|
| Standard car mileage | 60,000 miles over three years | 30,000 miles over three years |
| New WAV mileage | 100,000 miles over five years | 50,000 miles over five years |
| Standard excess mileage charge | 5p per mile | 25p per mile including VAT |
| Three-year tyre allowance | Previous agreement terms apply | Up to six tyres, including no more than four for damage |
| Five-year WAV tyre allowance | Previous agreement terms apply | Up to ten tyres, including no more than six for damage |
| VE103 certificate | No administration fee | £22 administration fee, subject to the Northern Ireland exception |
The official Motability changes page confirms that insurance, servicing, maintenance and breakdown cover remain part of the all-inclusive lease package.
Purpl Insight: A lower mileage allowance can have a bigger effect on disabled people who travel long distances for specialist treatment, work, education or essential support. Check your real mileage rather than assuming 10,000 miles a year will be enough.
The UK Government changed the tax relief available to qualifying vehicle leasing schemes from 1 July 2026. Standard-rate VAT now applies to most payments made on top of a qualifying mobility allowance, while Insurance Premium Tax applies to the insurance element of most new leases.
Motability also pointed to other rising costs. It estimated that the average cost of a new lease would have increased by around £1,100 if it had made no changes. Motability therefore reduced mileage, changed tyre limits and introduced an overseas travel administration fee as part of its response. You can read Motability’s explanation of the Scheme changes.
Motability reports that three out of four customers already drive below the new 10,000-mile annual limit. That does not mean the reduction will work for everyone, particularly people whose disability or location creates unavoidable long-distance travel.
Purpl Insight: Average mileage figures do not reflect every disabled person’s life. Regular hospital appointments, inaccessible public transport or rural isolation can make a car essential rather than optional.
Most new Motability car orders now include 30,000 miles over a three-year lease. This works out at an average of:
New five-year WAV leases include 50,000 miles in total. The standard charge for mileage above the lease allowance is 25p per mile including VAT, or 21p per mile where the lease qualifies for VAT relief. Motability sets out the current allowances and charges in its official mileage guidance.
For example, if you return a three-year vehicle with 32,000 miles on the clock and have no approved additional mileage support, the extra 2,000 miles would cost £500 at 25p per mile.
You normally pay any excess mileage charge when you return the vehicle at the end of the lease.
Purpl Tip: Look at old MOT certificates, service records or your vehicle app to calculate your typical annual mileage. Include journeys made by named drivers for the disabled customer’s benefit, not just the miles you drive personally.
Motability has introduced additional mileage support for customers whose essential travel needs are significantly higher than the standard allowance. It may consider journeys for the disabled person who receives the qualifying mobility allowance when they relate to:
Holiday and leisure journeys do not count when Motability assesses a request.
Everyone begins with the standard mileage allowance. To be considered, you must show that you expect to need more than 3,000 miles a year for eligible healthcare, education or employment journeys.
If Motability approves your request, it provides support for the eligible mileage above that first 3,000 miles. Once your total mileage goes beyond the standard 10,000-mile annual allowance:
You may need to provide information about appointment travel, employment, education, a significant change in circumstances or the services available where you live.
Motability says you can request support before ordering, or during a lease that already uses the new terms if your circumstances change. You can also ask it to review a decision if you disagree with the outcome. The full process appears in Motability’s additional mileage support guidance.
Some customers in the most rural areas can receive up to 3,000 additional miles a year. Motability checks postcodes against government data about rural isolation and says it will contact eligible customers directly by email or letter. You do not need to contact Motability to ask whether your postcode qualifies.
Purpl Tip: If you expect to exceed the allowance because of treatment, work or education, speak to Motability before ordering. Keep appointment letters, work details and a realistic mileage calculation ready, but only share information relevant to your request.
Tyre replacement remains included within Motability’s fair-use allowance, but the number covered under new agreements is now limited.
Motability says its customers replace an average of two tyres or fewer during a three-year lease. However, driving conditions, road damage, vehicle weight and individual travel needs can make one person’s experience very different from the average.
If you use the full fair-use allowance, you will need to pay for further tyres and tyre repairs yourself. Motability says it will explain the available options and costs if you reach the limit. You can check the official tyre replacement rules.
Your tyres must still remain roadworthy and safe. The fair-use limit does not make it acceptable to continue driving on an unsafe tyre.
Purpl Tip: Ask the tyre fitter to explain why a tyre needs replacing and keep a record of every replacement. Correct pressure, wheel alignment and prompt checks after pothole damage may help prevent avoidable wear.
VAT and Insurance Premium Tax are different taxes, so it is important not to combine them into one customer charge.
No VAT is charged on the qualifying mobility benefit transferred towards the lease. Under the new tax rules, that benefit is disregarded when the lease is valued for VAT purposes.
For most leases, standard-rate VAT can apply to payments you make on top of the mobility allowance, including:
If you ordered before 1 July but collected the vehicle after that date, Motability says the Advance Payment remains protected by its price freeze. VAT may still apply to later costs such as excess mileage or early termination fees because the lease starts when you collect the vehicle. Motability explains this in its VAT and Insurance Premium Tax guidance.
Insurance Premium Tax, or IPT, applies to the insurance element of most new Motability leases at the standard 12% rate. It is not a separate 12% charge simply added to your Advance Payment or excess mileage bill.
The HMRC policy on reforming Motability tax reliefs confirms that the new VAT and IPT rules took effect for new leases from 1 July 2026.
Some vehicles continue to qualify for VAT relief. This includes vehicles designed for wheelchair or stretcher users, or substantially and permanently adapted so a person who normally uses a wheelchair or stretcher can travel in them.
Most WAVs and some cars with significant permanent adaptations may meet the criteria. Customers need to complete an eligibility declaration when ordering. Where the vehicle qualifies, top-up payments can remain zero-rated and the insurance can remain exempt from IPT.
The cost of an adaptation needed so a disabled person can drive or travel in a vehicle may also receive VAT relief, even where the wider vehicle lease does not qualify. Your dealer should explain which declaration applies.
Purpl Insight: Do not assume every adapted vehicle automatically qualifies for full VAT relief. The HMRC test focuses on wheelchair or stretcher use and the nature of the vehicle’s permanent adaptations.
You can still take a Motability car or WAV abroad, but you must obtain a VE103 certificate before leaving the UK. This document proves you have permission to use the leased vehicle overseas.
For new orders under the updated terms, the VE103 certificate carries a £22 administration fee. The certificate lasts for 12 months and can cover multiple journeys during that period.
Call the RAC on 0800 731 3310 at least three weeks before travelling. Motability also states that you can take a Scheme vehicle abroad for up to 90 days in total during a 12-month period. You need written permission for a longer stay.
Yes. Motability customers who live in Northern Ireland still need a VE103 certificate to drive into the Republic of Ireland, even for a short visit, but they do not have to pay the £22 administration fee for that journey.
The full overseas travel rules, destination list and breakdown cover information appear in Motability’s current travel guidance.
Purpl Tip: Apply for the VE103 early and check the rules for every country on your route. Keep the certificate with your travel documents and remember that overseas RAC cover differs from UK breakdown cover.
The start date depends on who pays the qualifying mobility allowance and whether you are looking at Motability’s lease terms or the separate UK tax rules.
The new mileage, excess mileage, tyre and VE103 terms apply to vehicles ordered on or after 1 July 2026.
For customers whose qualifying allowance comes from Social Security Scotland, including eligible Adult Disability Payment and Child Disability Payment recipients, the new mileage, tyre and overseas travel terms apply to vehicles ordered on or after 1 September 2026.
Scottish orders placed before 1 September 2026 remain on the earlier mileage terms, including 60,000 miles over a three-year lease, 100,000 miles over a five-year lease and a 5p excess mileage charge. Motability’s mileage FAQ confirms this separate implementation date.
If you ordered your current vehicle before the relevant date, its existing mileage and tyre terms do not change automatically. The updated terms apply when you place a new order.
The UK Government’s tax changes are separate from Motability’s Scottish implementation date. HMRC introduced the new VAT and IPT treatment for new leases from 1 July 2026 across qualifying schemes.
Purpl Tip: Check the order date on your paperwork rather than relying on the vehicle collection date alone when identifying your mileage and tyre terms. For VAT on later charges, the collection date can still matter because that is when the lease begins.
Motability remains valuable for many disabled people because it combines a vehicle, insurance, servicing, maintenance and breakdown cover. However, the reduced mileage allowance, higher excess charge or cost of a suitable vehicle may lead some people to compare other options.
Before leaving the Scheme, compare the full cost of insurance, servicing, repairs, breakdown cover, vehicle tax and adaptations. A lower headline monthly payment may not include the support built into a Motability lease.
Purpl members can currently access savings with several accessible transport specialists:
Offers and terms can change, so sign in to Purpl and read the current offer conditions before booking or buying.
Purpl Insight: The right comparison is not Motability versus the purchase price alone. Work out the total cost, the contract length, who can drive, what happens if your needs change, and which adaptations you can transfer or keep.
Purpl Tip: Ask for costs and key terms in writing before committing. Keep the order confirmation, eligibility declaration and any agreed additional mileage support with your lease documents.
No. If your current vehicle was ordered before the relevant implementation date, the mileage terms in that agreement continue. The new allowance applies when you place your next order under the updated terms.
A new standard three-year car lease includes 30,000 miles in total. A new five-year WAV lease includes 50,000 miles. This averages 10,000 miles a year in both cases.
The standard charge is 25p per mile including VAT for mileage above your agreed allowance. The rate is 21p per mile where VAT relief applies. Approved additional mileage support can reduce the charge for agreed miles.
Motability may offer additional mileage support if you can show that the disabled allowance recipient needs more than 3,000 miles a year for healthcare, education or employment journeys. It assesses each request individually and may ask for supporting information.
You can replace tyres when necessary for safety, but the lease only covers replacements within the fair-use allowance. If you exceed the limit, you will need to pay for further tyres or repairs yourself.
No. The qualifying mobility benefit transferred towards the lease is disregarded for VAT valuation, so VAT is not charged on that element. VAT can apply to payments made on top, including most Advance Payments, excess mileage and early termination fees.
No. Vehicles designed for wheelchair or stretcher users, or substantially and permanently adapted for their use, can continue to qualify for VAT relief. Your dealer will ask you to complete an eligibility declaration if the exemption may apply.
No. Customers living in Northern Ireland need a VE103 certificate to take the vehicle into the Republic of Ireland, but Motability does not charge them the £22 administration fee for that journey.
Compare private ownership, adapted vehicle subscriptions and short or long-term WAV hire. Include insurance, servicing, repairs, breakdown cover and adaptation costs before deciding. Purpl members may be able to save with Accessible Vehicle Club, Open Road Access and Mobility in Motion.
The new Motability terms reduce the standard allowance to 30,000 miles over three years, or 50,000 miles over a five-year WAV lease. They also introduce a 25p standard excess mileage charge, tyre fair-use limits and a £22 VE103 administration fee.
The rules started on 1 July 2026 for most new orders and on 1 September 2026 for customers receiving their allowance from Social Security Scotland. Existing agreements keep their original mileage and tyre terms.
If healthcare, education or employment journeys create unusually high mileage, ask Motability about additional support. If the new terms no longer meet your needs, compare the whole cost and practical support offered by alternative accessible vehicle services before making a decision.
Purpl Insight: Do not rush to leave Motability because one headline figure looks worse. Work through your own mileage, vehicle, adaptation and support needs, then compare like with like.
Georgina is the Founder of Purpl and lives with Multiple Sclerosis. She created Purpl to help reduce the disability price tag through exclusive discounts, practical guidance and better access to financial support for disabled people, people with long term health conditions, and their families and carers.
Her writing combines lived experience with careful research into disability benefits, mobility, accessible services and the everyday costs that disabled households face.
Life after Motability: your guide to private adapted car ownership: A practical guide to buying, adapting and running a private vehicle if you leave the Motability Scheme.
How to get a Motability car: a quick step-by-step guide: How to check your qualifying mobility allowance, choose a suitable vehicle and complete a Motability application.
Motability Scheme eligibility: how to qualify for a disability car: Find out which disability benefits and mobility rates can provide access to the Motability Scheme.
Accessible Vehicle Club disability discount: Explore the current Purpl member saving on accessible vehicle subscriptions
Open Road Access disability discount: Check the latest Purpl offer for WAV hire and accessible vehicle subscriptions.
Mobility in Motion disability discount: Save on eligible driving adaptations and mobility products as a Purpl member.
Sell your car with Carwow and receive a £115 Amazon gift card: Claim the Purpl member offer before starting a qualifying car sale through Carwow.