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HMRC internal manual

VAT New Means of Transport

HM Revenue & Customs
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Purchasing a new means of transport in the UK for removal to another member-state: new means of transports subject to a finance agreement

Sales of new means of transport subject to a finance agreement to non-registrable persons

The sale of new means of transport to private persons in many instances will involve the provision of finance to purchase the goods. Where a private non-registrable person funds the purchase of the goods using a finance house, the supplying dealer is making a standard-rated supply to the finance house. The finance house then makes the zero-rated supply of the new means of transport to the non-taxable person and must be in possession of the second copy of the VAT 411 (VATNMT4150) to support the zero rating of the supply. When dealers sell new means of transport that are subject to finance they should ensure that the VAT 411 clearly shows that it is the finance house supplying the vehicle. The dealer must send the second copy of the Form VAT 411 to the finance house for retention by them; the other copies of the form should be distributed in the normal manner.