Newsletters
Autumn News
Scrappage
No matter where Mr Darling created this word from - many people have taken advantage of it. What about tax? If you traded in a company car, it will be treated as disposed of for nothing, even if you enjoyed an allowance of £2,000 for scrapping it. If you can claim Capital Allowances on the new car, you have to knock off the £2,000 you didn't have to pay towards it. And if you are taxed on the benefit in kind of using it, that's based on the list price, which isn't affected by the scrappage allowance at all.Confused? It's more complicated still for VAT, but fortunately the VAT rules don't affect many people - motor manufacturers, dealers, and the very few who can claim the VAT back on the purchase of a car. If you are one of those, or if you've traded in an old company banger and want to be sure you've done the tax computation correctly, we can help.