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Get the VAT back on car accessories

This month’s loophole is all about the importance of timing – or, to be more specific, doing things in the right order.

Most people know that you can’t reclaim the VAT on the purchase of a car (unless it counts as a ‘van’), even if you are a VAT-registered person. This blockage of VAT applies to any accessories built into the car when you buy it, so the VAT ends up getting excluded on them as well.

So do it the other way round. Buy the car with the minimum number of accessories possible (you probably need to keep the steering wheel) and mount them later on. In that way your Sat-Nav, flash spectrum coloured headlights etc. can be put down as claims on your VAT return.

   
 

In the April 08 issue of the Schmidt Report:

NEWS

EDITORIAL

HOW TO MAKE CASH LESS TAXING

USING YOUR PENSION FUND FOR FLAT CONVERSION?

RED ALERT FOR NON-DOMICILIARIES

CAPITAL GAINS TAX: THE ‘WRINKLES’
Non-UK residents

TAX TIP OF THE MONTH
Homes and gardens

THE PROPERTY COLUMN
Should I opt to pay tax?

THE INHERITANCE TAX COLUMN
Halve the IHT on your home: without moving out

LOOPHOLE OF THE MONTH
Get the VAT back on car accessories

TAX INVESTIGATIONS
Rights and wrongs

SAVING TAX OFFSHORE
Buying goods through offshore entities

THE BUSINESS COLUMN
Save tax – and feel good about it

ASK THE EXPERTS

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