Selling a tax free vehicle on returning to the UK

Discussion in 'Cars, Bikes 'n AFVs' started by Dog_Egg_Farmer, Jun 2, 2010.

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  1. Being due posting back to Blighty next year, I have been enquiring about when we are able to dipose of our Tax Free cars without penalty. Having had numerous answers from every tom dick and harry, from Customs to BFG all Military linked bods came back with 12 months, all dealerships bods came back with 6 months and UK customs came back with no time limit at all! Worst part of all, is that no-one could give me the direct reference of where it stated such.

    Well, after scouring the HMRC website for the definitive answer I believe I have found it:

    Taken from HMRC website VATNMT7400

    "Note also that the forces’ regulations (in Germany only) require the personnel to retain ownership of the means of transport for a minimum of 12 months. Where there is evidence that this has not been the case, the Personal Transport Unit, VATNMT2000, should be informed."

    So there you have it, if you want to take the risk, then on your head be it, I have heard that some have gotten away with it and others wern't so lucky.

    Perhaps this should be stickied for future reference.
  2. Only for cars that are less than 6 months old.
  3. No, only for new tax free cars. Second hand cars are VAT exempt
    and can be sold whenever you want.
  4. Providing they are AT LEAST 6 months old
  5. you're going to have to bear with me on this one, I haven't got a clue what your on about reference the 6 month thing!
  6. It is really very simple. If you buy the car new just in time to return to UK you cannot sell it for 12 months. If, however, you buy it AT LEAST 6 months before returning to the UK you can sell it immediately as it is no longer classified as new.
  7. Yes that's what I thought you might be getting at!
    I'm afraid you're wrong, you must keep a tax free sourced vehicle for 12 months regardless as to how long it's been BFG'd. As it states in my link above.
    If you have access to some verifyable information that corroborates your 6 month ruling, then please post a link up as that's exactly what I want to do, but keeping everything friendly with the tax man.
  8. It's not just the risk of Customs coming after you for the tax on the vehicle: if you get caught breaking SOBAGs in terms of BFG, you can expect the right to buy a tax free vehicle to be taken off you, not only that your cheap fuel is barred too!

    BFG regs whilst a pain in the backside are no great mystery.
  9. Totally understand the BFG ban thing, with 2 yrs left in Green, the chances of being posted back to Germany are non-existent. So couldn't give a monkeys about that, its the TAX man chasing me that dictates my next move.

    I'm not intentionally trying to be pedantic here, but you'll understand I want to be 100% with concrete evidence before some jobs worth from HMRC starts demanding my pay check.

    By the looks of things, its fairly cut and dry, 12 months end of, but like I said earlier, if anyone does have another answer that they can backup, then I'm all ears.
  10. To be completely honest, it is now a little while since I was in Germany so my information, although correct then, may be out of date as the rules did change regularly to make it harder for those who used the system as a means of making money as opposed to its intended purpose which is tax free purchase of goods for personal use. But....................

    Having read the SOBAG aid memoire (See 28 Bravo's link above), I conclude the following.

    The 12 months limit is only relevant to you if you wish to make a subsequent purchase of another BFG tax free vehicle.

    As you have stated that you do not, you will have no issues. The 12 months is a BFG restriction, not a UK tax issue. The tax man here doesn't care!