Important changes in Vehicle Tax refunds and VAT implications

legal_updates

New legislation from 1 January 2009 will affect many motor dealers who have previously bought part exchange vehicles with a RFL tax disc.

Author: Dennis Chapman
Published:
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This article is 13 years old.

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New legislation from 1 January 2009 will affect many motor dealers who have previously bought part exchange vehicles with a RFL tax disc. 

From 1 January 2009 only the current or last registered keeper can apply for a refund.  The dealer cannot.  It appears this will close a non-vatable income source to many dealers.

The applicant, ie the customer, when surrendering the licence, must have informed the DVLA of:

  • the sale, scrapping, export, stealing of the vehicle
  • any SORN notification (if the vehicle hasn’t been re-taxed within 21 days of the SORN)
  • any taxation in the nil value tax class eg disabled

Dennis Chapman

In remembrance of Dennis Chapman 1951 -2015

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