VAT exemption for disability?

dane-katie

My FIL is looking to buy a car for my use, i get HRC and LRM since the car is for my use, can i get an exemption of the VAT (it would be second hand from a main dealer)

Thanks

midnight_express

There is no VAT on second hand goods.

dane-katie

There is if i go somewhere like Vauxhall.

Chorlie

You can only get a VAT Exemption if you are a permanent wheelchair user and the car is adapted to either enter, ride in or drive and it has to be on a VAT aplicable car (ie New, Pre Reg or Ex Demo), a second hand car doesn't have VAT on it since that was paid by the first owner.

kingfisherblue

dane-katie wrote: »

There is if i go somewhere like Vauxhall.

If this is the case, why ask? Not being rude, just curious.

leveller2911

midnight_express wrote: »

There is no VAT on second hand goods.

Yes there is...........Many 2nd hand commercial vehicles are sold as +vat...;)

Chorlie

leveller2911 wrote: »

Yes there is...........Many 2nd hand commercial vehicles are sold as +vat...;)

You're talking about the VAT on the margins, the difference between what the dealer bought the second hand vehicle for and what they sell it for, ie the profit the dealer makes on the vehicle, the dealer has to pay VAT on this profit (the margin).

Margin are on all second hand vehicles, not just commercial. The reason it's mentioned on commercial vehicle sales is if you buy a commercial vehicle for your business, it's possible that you're also registered for VAT and if so you can claim that VAT back on the goods used for business.

Therefore if you're disabled (wheelchair user) and buy a second hand adapted car, you maybe able to claim the VAT (or be except from paying) on the Margin for that car.

I've bought 13 car VAT exempt and know several people who also buy cars this way, but I and no one I've heard off has bought a second hand one and got the VAT off the margins.

You're best bet is to call the Tax Office, but like I said before you have to be permintant wheelchair user and the car has to be adapted, if you don't met these two rules you can't get a car VAT Exempt.

JasonLVC

As others have posted, the zero rating relief only related to the sale of a new car, it doesn't apply for a 2nd hand car.

From 01 January 2012 they are changing the rules for new cars. Previously, you can buy a new car at the zero rate and then have the adaption done "shortly" afterwards, but now, the adaptions have to be done before you take possession of the vehicle.

http://www.hmrc.gov.uk/briefs/vat/brief4111.htm

But this doesn't change the fact that there is no concession for 2nd hand cars.

kaya

i am not sure how much the rules have changed but the addition of a bolt on the steering wheel hand wheel thingy (sorry for the pants description) used to be classed as a suitable adaptation as it was bolted on, and depending on your budget if you take the VAT off of a new vehicle you may be in the ball park of a second hand car anyway , i asked 2 years ago and provided i turned up in a wheelchair and had a wheel knob fitted that would qualify , remember the sales person wants to sell you that car very much in todays financial climate so they may be a little flexible in their attitude , good luck whatever you decide to do

Caparn

Ok, if I have a knob added to the steering wheel to make it adapted then how long do I have to keep the car before I can sell it? There might be the opportunity to make some money on this. The VAT on a £100k car is £20k, maybe I could make a living out of buying and selling cars if I can do it frequently enough?

anguk

Caparn wrote: »

Ok, if I have a knob added to the steering wheel to make it adapted then how long do I have to keep the car before I can sell it? There might be the opportunity to make some money on this. The VAT on a £100k car is £20k, maybe I could make a living out of buying and selling cars if I can do it frequently enough?

I could be wrong but I thought for something to be VAT exempt the person buying the item had to be disabled or suffering from a long term illness? I know with other disability aids you usually have to sign some sort of exemption form. My OH has just pre-ordered his Motability Car and on the invoice it's got the VAT amount listed, he's getting a steering knob and an easy-release handbrake fitted.