Company cars

Company cars

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Hi

A non resident director of a UK limited company has asked whether the company can 'purchase' a company car from Greece. This car would be used not more than 6 months of each year in the UK with the balance in Greece.

Unusual question I know - any advice much appreciated.

Regards

Replies (7)

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By George Attazder
06th Mar 2013 16:23

It's not really any different from Greek yoghurt

What's to stop it buying a Greek car?

Greek's still in the EC isn't it? So there should be any import duty implications.

Whether or not you can keep running a Greek registered car, for half the year, year on year, is neither a tax or accountancy question as far as I can see.

I'd try buyinggreekcarsanddrivingthemin theuk.co.uk.

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By YellowSticky
06th Mar 2013 18:10

Car

http://www.hmrc.gov.uk/manuals/eimanual/EIM23020.htm

A car is a mechanically propelled vehicle that is not a goods vehicle and is one that can be used for a private purpose

You will have an issue finding the cash value but besides that - taxed as normal I would have thought

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By shaun king
06th Mar 2013 19:26

You can usually use a vehicle displaying non-UK number plates, and not have to tax or register it in the UK, if:

you’re visiting the UK and don’t plan to live hereyou only use the vehicle up to 6 months in a 12-month period (1 single visit, or several shorter visits adding up to a 6-month period)the vehicle is registered and taxed in its home country 

Otherwise you will need to register it with the DVLA .

As the vehicle is second hand and I assume it is over 6 months old and has travelled over 6000KMs you will be required to show that VAT was paid on the original  purchase of it - in which case there will be no UK VAT to pay. If it is less than 6 months old and has travelled less than 6000 KMS it will be a new means of transport and VAT could be payable in the UK.

Strange how you can find that running a car is a tax question if done incorrectly.

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By neileg
07th Mar 2013 10:30

Non Tax point

You can't drive a foreign registered car in the UK on a UK driving licence, I believe. 

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Replying to Hugh Simpson:
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By Anthony123
07th Mar 2013 13:39

are you sure?

you are not confusing this with UK residence? Anyone resident in UK must register car immediately (with some exceptions for students etc)

given that you can drive anywhere in EU on UK driving licence if you are right it would mean someone moving to live in say France but retaining their UK driving licence would never be able to bring that car back to UK even for a short holiday.

Just curious to understand the position!

 

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By neileg
07th Mar 2013 14:19

@Anthony123

No I'm not sure, that's why I added 'I believe'. I'll try and remind myself where I read this.

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By justinse
15th Mar 2013 12:45

Thanks to everyone

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