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Need advice on buying a commercial...
Hi There , I'm looking to get a Land Rover car but a lot of these are listed as commercial vehicles with additional vat to be paid on top of the price. Could you please explain what does it actually mean for car to be commercial vehicle and how is VAT regulated on these , is it one off only ? Many Thanks
Our answer:
Hi Simon,
Yes, the VAT would be a one-off payment to the trade seller of the vehicle. VAT-registered businesses buying the vehicle would claim that VAT back.
However, you need to be aware that if you buy a commercial vehicle for private use, the motor tax goes to the old by-engine-capacity regime, regardless of the year of the vehicle. That can substantially increase your annual tax bill if you don't choose wisely.
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