Business Vehicles At Auction
In the UK you have to treat business vehicles different to say privately owned ones as often they are liable to VAT charges. When we say business vehicles we don’t mean vans or lorries such like but normal cars that have been used for the purpose of benefiting a business. An example is a small Citroen car that came to auction that used to belong to a driving instructor training school and had a bump (not a good advert). Normally this car would be the value of the fianl hammer, but because this was business owned for no private use and the owner of the business claimed VAT off the purchase, the car went to auction as final price plus VAT, even though it was salvage. Not sure how this works in other countries but it is very important to cover your tracks here.
This could be especially important when buying a car that even though damaged is not registered as a salvage car. Sometimes this is because the company underwrote any insurance claims up to a certain point and it is the vehicle owner who is selling the car, not the insurance company.
This ex driving instructor training school vehicle had only done 20,000 miles but cost the new owner 15% more thyan he bargained, as he was not prepared and did not do his homework.
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