½Û×ÓÊÓƵ

Scope of self-supply for motor cars

Generally speaking, input tax on the supply, acquisition (before IP completion day) or importation of a motor car¹ is excluded from credit².

However, where certain conditions are met, however, input tax credit is permitted. For input tax credit in connection with motor cars, see V3.443. In broad terms, input tax credit is allowed where the motor car:

1. Ìý

   •ÌýÌýÌýÌý is intended for use wholly for business purposes

2. Ìý

   •ÌýÌýÌýÌý forms part of the stock in trader of a motor manufacturer or dealer, or

3. Ìý

   •ÌýÌýÌýÌý is used principally for use as a taxi, for self-drive hire, or for driving instruction

For the charge that arises in connection with non-business use in circumstances not triggering a self-supply charge, see V3.212.

If circumstances change such that, where input tax has been recovered and, the prescribed conditions cease to be met, the self-supply provisions are