Budget Vintage VAT

[HawkAl]

Is there any mention of reducing the current VAT rate on vintage cars from the UK?

Surely this is a huge loss of revenue to the exchequer or is there simply not enough noise being made by vintage groups?


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[crank_case]

It'd be nice, but I'm not sure what you mean by loss of revenue? Has there been a significant VAT change in the budget?

Pre Brexit, revenue got no VAT and minimal VRT, now they get some VAT, so not really a "loss" from their perspective.

I doubt vintage groups are going to pick this one as a battle worth fighting. VAT has always been applied on anything from outside the EU (e.g American and Japanese imports), all that changed is Britain decided to leave the EU.

[HawkAl]

As in reduced number of vehicles being imported due to the increase of VAT post Brexit.

Yeah I agree, if it’s on all items hard to see a vintage group having much sway.


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[kdevitt]

Surely this is a huge loss of revenue to the exchequer or is there simply not enough noise being made by vintage groups?

Huge loss of revenue how? They're luxury, and discretionary purchases - and already relatively rare - its hardly childrens clothing we're talking about here.

[DMZ]

With GB out of the EU, it is what it is I think. The exchequer is no doubt making good money on GB imports of all kinds.

[davemx-5]

Interesting you mention this as a classic car dealer took hmrc to court regarding importing of classic vehicles over 30.

They argued that anything over 30 had significantly reduced usage and should not be charged their 20%VAT and 10% duty.

They won the case as a result. This should be done here. Its not a loss of revenue per say just common sense that comes lacking in the Republic of vrt.

[kdevitt]

Interesting you mention this as a classic car dealer took hmrc to court regarding importing of classic vehicles over 30.

They argued that anything over 30 had significantly reduced usage and should not be charged their 20%VAT and 10% duty.

They won the case as a result. This should be done here. Its not a loss of revenue per say just common sense that comes lacking in the Republic of vrt.

The dealer was importing them under a specific exemption for items of significant historical interest.

To qualify, the "vehicle has to be relatively rare, no longer in normal use for the purpose for which it was originally made, sold outside the normal vehicle trade, and of high value. In addition the vehicle should illustrate an important stage in the development of the motor car". The EU directive the ruling was based off is pretty clear that while the vehicle should evidence a step in the evolution of human achievements, not every 30 year old car falls into that category.

[davemx-5]

Pretty much every 30 year old car was able to be argued. I also did it and wasn't asked any questions.

[kdevitt]

Pretty much every 30 year old car was able to be argued. I also did it and wasn't asked any questions.

What exactly did you do though? If revenue do treat them as collectors pieces, then there is no relief from duty - but a lower VAT rate of 13.5%. I've contacted revenue anyway for their interpretation of the treatment of the EC directive, which they'll probably ignore .

[davemx-5]

Used the UK system before brexit to import a car over 30 years old through UK and avail of 5% vat and 0% duty. Just needed to then pay €200 vrt.

They don't ask to prove heritage, originality, no documentation needed.

[kdevitt]

Used the UK system before brexit to import a car over 30 years old through UK and avail of 5% vat and 0% duty. Just needed to then pay €200 vrt.

They don't ask to prove heritage, originality, no documentation needed.

There was no VAT or duty at all prior to Brexit, just the €200 VRT. Thats still the case for any cars coming in from the EU.

Its why the original post makes little sense - revenue aren't down on any VAT receipts from these cars - they received nothing at all prior to brexit.

[davemx-5]

There was no VAT or duty at all prior to Brexit, just the €200 VRT. Thats still the case for any cars coming in from the EU.

Its why the original post makes little sense - revenue aren't down on any VAT receipts from these cars - they received nothing at all prior to brexit.

It was a jap import. Non EU car. But yes I understand your point. However, the UK were members of the EU at that point in time and doing that for non EU imports. Which I think the op is digging at Ireland replicating.

[Flet]

I have a funny feeling that similar to the tweaks on the NI Protocol, there may come a situation where ROI might have to do a deal with the EU re. VAT and Customs on UK imports. We'll run out of cars otherwise.

[kdevitt]

I have a funny feeling that similar to the tweaks on the NI Protocol, there may come a situation where ROI might have to do a deal with the EU re. VAT and Customs on UK imports. We'll run out of cars otherwise.

Yeah that wouldn't surprise me, although I can't imagine the SIMI will be beating the door down for it.

I do have an interesting update from a customs agent on the vintage stuff, but waiting on revenue to confirm!

[Leins]

The thing that still annoys me is technically VAT within the EU was already paid on these cars when they were bought new in the UK (pre-2021)