Vat free purchases for charity use

boysclub

Hi, I manage a youth club for young people with disabilities and am also a trustee for a seperate Charity no 1139205. We have raised money to buy an unadapted MPV 7 seat vehicle, to be used to transport disabled members to/from youth club, take disabled members on shopping trips, and on the canal holidays, IF we buy a NEW vehicle, can we buy vat free? We do not need and adapted vehicle as all members have Learning disabilities - downs syndrome, minor mobility problems etc but no wheelchair users, we require the maximum number of seats availabe for planned useage.

fermi

Hi, Martin’s asked me to post this in these circumstances: I’ve asked Board Guides to move threads if they’ll receive a better response elsewhere so this post/thread has been moved to another board, where it should get more replies. If you have any questions about this policy please email [EMAIL="forumteam@moneysavingexpert.com"]forumteam@moneysavingexpert.com[/EMAIL].

antrobus

I believe that it should be VAT free;

see VAT notice 701/6

4.7 Which motor vehicles (other than ambulances) qualify for zero-rating?

When purchased or hired by an eligible body using charitable or donated funds, the following vehicles are zero-rated...unadapted motor vehicles that have between 7 and 50 seats, and are purchased or hired for use by an eligible body mainly for the transportation of blind, deaf, mentally handicapped or terminally ill people.


http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageLibrary_ShowContent&id=HMCE_CL_000131&propertyType=document#P281_24214

Buzby

If you purchase it second-hand (which makes eminent sense) there is no VAT to pay, neither is car tax which is paid by be first purchaser only. Watch out for rade sales (or ex-leased) where it may have to be accounted for.