According to the Society of Motor
Manufacturers and Traders (SMMT) 29,796
vehicles have been registered under the
scrappage scheme since it started on 18
May 2009. This accounted for 9.7% of
June’s new car registrations a total of
17,014 units. In addition to cars 323 vans
were also registered in June under the
scheme (1.9% of van registrations).
Paul Everitt, SMMT chief executive said:
“The scrappage incentive scheme is working
well and has encouraged a lot more people
back into showrooms. In the coming months,
we will see an increase in the rate of
deliveries and this will confirm further
progress on the industry’s long road to
recovery.”
The vehicle scrappage 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, have
been registered on or before 31 August
1999.
The scheme is expected to run until
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. For HMRC’s views
on the business tax and VAT implications
of the car and van scrappage scheme use
the HMRC link below.
If you have any queries on the tax
implications of the scheme please do get
in touch.
Internet links:
SMMT article
Directgov website
HMRC Brief
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