.png)
.png)
The position on VAT input tax claims for new cars following three recent First-tier Tribunal decisions.
KEY POINTS
- A glimmer of hope for VAT claims on motor vehicles?
- Two conditions in The Value Added Tax (Input Tax) Order 1992 Art 7 must be satisfied.
- Employment contracts must reflect commercial reality.
- Is the vehicle is insured for business purposes only.
- Is there an enforceable legal restriction on private use.
Going back to my Customs and Excise days in the 1980s I had a simple approach to deal with input tax claims on new cars: ‘If you are a taxi driver car hire business or driving school or if you are buying the car for resale you can claim it back. You can also reclaim input tax if it is a genuine pool car but you will have a big job...
Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
