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Jun
Vehicle scrappage scheme
The vehicle scrappage or discount scheme is a voluntary scheme
for motor dealers. Participating dealers will give buyers a
£2,000 discount off the purchase price of a new car or small
van in exchange for scrapping their old qualifying vehicle which
must, amongst other criteria, be registered on or before 31 August
1999.
The scheme is expected to run from mid May 2009 to March 2010,
unless funds are exhausted before then. For general information on
the £2,000 scrappage discounts and the qualifying conditions
for vehicles visit the Directgov link below.
HMRC have published their view on the tax implications of the
car and van scrappage scheme. The guidance covers the business tax
and VAT implications of the scheme.
If you have any queries on the tax implications of the scheme
please do get in touch.
Internet links: Directgov
website HMRC Brief
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