Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

VAT Margin Schemes

From
HM Revenue & Customs
Updated
, see all updates

Second-hand vehicles: What vehicles are eligible for the scheme?

The scheme can be used to buy and sell any second-hand vehicles, other than imported vehicles, including commercial vehicles, provided the conditions set out at VATMARG02150 are met. 

The VAT (Cars) Order 1992 (S.I. 1992/3122) Article 2 (amended with effect from 1 December 1999) interprets a motor car as follows:

INTERPRETATION

2(1) In this Order -

“motor car” means any motor vehicle of a kind normally used on public roads which has three or more wheels and either -

(a) is constructed or adapted solely or mainly for the carriage of passengers; or

(b) has to the rear of driver’s seat roofed accommodation which is fitted with side windows or which is constructed or adapted for the fitting of side windows;

but does not include -

(i) vehicles capable of accommodating only one person;

(ii) vehicles which meet the requirements of Schedule 6 to the Road Vehicles (Construction and Use) Regulations 1986);

(iii) vehicles of not less than three tonnes unladen weight (as defined in the Table to regulation 3(2) of the Road Vehicles (Construction and Use) Regulations 1986);

(iv) vehicles constructed to carry a payload (the difference between a vehicle’s kerb weight (as defined in the Table to regulation 3(2) of the Road Vehicles (Construction and Use) Regulations 1986) and its maximum gross weight (as defined in that Table) of one tonne or more;

(v) caravans, ambulances and prison vans;

(vi) vehicles constructed for a special purpose other than the carriage of persons and having no other accommodation for carrying persons than such as is incidental to that purpose.