| The Vehicle Scrappage
Scheme is a voluntary scheme for motor
dealers under which participating dealers
give buyers a £2,000 discount off the
purchase price of a new car (or certain
types of small van) in exchange for
scrapping their old qualifying vehicle.
Funded jointly by the government and
manufacturers, the scheme has proved very
popular. Although the scheme is set to run
until February 2010, recent figures show
that approximately 80% of the available
budget for the scheme has already been
utilised. As the scheme enters its final
stages the Department for Business will
allocate order quotas to manufacturers
based on brand popularity and it is hoped
it will help to ensure a smooth closing of
the scheme.
Lord Mandelson, Business Secretary,
said:
“I’m pleased to see that the scheme has
been taken up by so many people,
supporting our automotive manufacturers
through a very difficult time. With
limited orders as we near the close of
scrappage there is a risk of
disappointment for car buyers. I would
urge people who are still keen on taking
part to put their orders in as soon as
possible as time is running out.”
For general information on the £2,000
scrappage discounts and other conditions
visit the scrappage website 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:
BIS press release
Scrappage website
HMRC Brief |
