.png)
.png)
N&M Walkingshaw v CRC, Upper Tribunal
When the price of a car includes a part exchange the customer makes a single net payment. The value allowed for the old vehicle sometimes exceeds the true trade value.
The taxpayer in the instant case believed the over allowance represented a discount on the value of the new car and that VAT due was on the discounted cost.
HMRC argued that the value was what the taxpayer and customer agreed making VAT due on the sum irrespective of any discount.
The taxpayer’s appeal to the First-tier Tribunal (FTT) was dismissed.
The Upper Tribunal agreed with the FTT that there was “no scope… for treating the value of the replacement car as having been discounted”. The open market value of the new car had to be assessed in the context of the transaction expressed as a monetary value.
The question concerned the amount in money a person at...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
