The current disabled drivers scheme, established under and governed by the Disabled Drivers (Tax Concessions) Regulations, 1989, provides significant tax concessions to qualifying disabled drivers and passengers with severe mobility problems. The reliefs available under the scheme include repayment of VAT and Vehicle Registration Tax on the acquisition of a new vehicle, excise duty refunds on up to 600 gallons of petrol or diesel annually and exemption from road tax.
While all vehicles must be specially constructed or adapted under the scheme, in the case of qualifying disabled passengers, the regulations require that the VAT-free cost of the vehicle adaptations must amount to at least 20 per cent of the pre-tax cost of the vehicle. This requirement stems from the fact that, generally speaking, where qualifying passengers are concerned, the nature of any adaptation which would be required to the vehicle would be quite different from those required by qualifying drivers. It must also be borne in mind that the vehicles involved are not likely to be used exclusively, or at all times, for the transport of the disabled passenger but will also be used by others e.g. family members.