������Ƶ

VAT Information Sheet 12/99, December 1999

This Information Sheet describes changes to the VAT treatment of business cars which will take effect on 1 December 1999.

We will issue a further Information Sheet in due course describing changes to the VAT treatment of disposals of business cars which will take effect on 1 March 2000.

VAT Notice 700/64 “Motoring expenses” will be amended once both sets of changes are in place.

1 Introduction

1.1 General

A number of changes to the VAT treatment of business cars will take effect on 1 December 1999. The main changes are—

1. ��

   —�������� London type taxis and 12-seater vehicles that do not meet road safety regulations to be reclassified as motor cars for VAT purposes;

2. ��

   —�������� vehicles with a payload of one tonne or more to be reclassified as not being motor cars for VAT purposes; and

3. ��

   —�������� input tax relief to be introduced for the stock in trade cars of motor manufacturers and dealers.

This