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Posted 7 days ago by jg0407
Hey guys, wanted to get some clarification on claiming VAT for an electric vehicle. I have a business contract hire and pay a monthly lease fee with vat each month. My accountant has said that I won't be able to claim back the 50% for the initial deposit and monthly lease payments because the car is technically owned by the lease company. From what I've read online and saw from different places this doesn't seem to match and I was in the thinking that it would be ok for me to reclaim that 50% when the time came. They mentioned if it was PCP it would be ok as I'd technically own it, but because the hire agreement means it's not a "business asset" this isn't possible. Would love to get further clarification on this if possible, Many thanks,
Posted 3 days ago by HMRC Admin 25 Response
Hi jg0407,
Please see the guidance below;
Revenue and Customs Brief 1 (2019): Change to the VAT treatment of personal contract purchases
This guidance determines whether the PCP supply is one of services or goods made to you.
If the supply is one of services please see the guidance below:
VIT53300 - Motoring expenses: leasing of cars
If the supply is one of goods please see the guidance below:
3. Input tax on buying a car
Thank you.

 

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