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HMRC internal manual

VAT Margin Schemes

The margin schemes: Specific circumstances: Private sales


The private sale of goods which are not business assets is usually outside the scope of VAT, and no VAT is due.

However, if a sole proprietor sells an eligible item which is transferred to the business from private holdings, VAT can be accounted for using the margin scheme, on condition that evidence is produced of the purchase price when it was bought for private use.