# Finance Act 2026, Section 81: Insurance premium tax relief limited to adapted vehicles

Extent: E+W+S+N.I.

(1) In Schedule 7A to FA 1994 (insurance premium tax: contracts that are not taxable), for paragraph 3 (and the italic heading before it) substitute—
“Contracts relating to motor vehicles let on relevant benefit terms
3 (1) A contract falls within this paragraph if it relates only to a motor vehicle and—
(a) the vehicle is let on hire on relevant benefit terms to a person, and
(b) the supply of the vehicle to that person is zero-rated for the purposes of the Value Added Tax Act 1994 as a result of it being a supply falling within—
(i) paragraph (f) in item 2 in Group 12 in Schedule 8 to that Act, or
(ii) item 2A in that Group.
(2) “Relevant benefit terms” is to be construed in accordance with paragraph (2) of item 15 in Group 12 in Schedule 8 to the Value Added Tax Act 1994 (zero-rating).”
(2) The amendment made by this section has effect in relation to contracts relating to leases of motor vehicles where the lease commences on or after—
(a) 1 July 2026, or
(b) such later date as may be appointed in regulations made (before 1 July 2026) by statutory instrument by the Treasury.

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Source: https://www.legislation.gov.uk/ukpga/2026/11/section/81 (the official version)
Page: https://openlegislation.uk/finance-act-2026/section-81
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.