| 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 by the government and manufacturers
the scheme has proved very popular and
according to the Department for Business
Innovation and Skills (BIS) website
260,226 cars have now been scrapped under
the scheme, which is set to run until
February 2010.
An extra 100,000 (£100 million) has
been added to the number of scrappage
deals that the government will fund,
taking it to 400,000 in total. In a change
to the qualifying conditions, the age of
the vehicle has also been adjusted to
first registered on or before 29 February
2000 for cars or 28 February 2002 for
vans.
For general information on the £2,000
scrappage discounts and other conditions
visit the BIS 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:
Scrappage website
BIS website
HMRC Brief |
