VAT implications on motor car conversion
Managing Director purchases old Renault 18 and pays third party to convert this to a 'Lamborghini'. Reclaims, in full, the input VAT through the company. Conversion costs of the order of £25K+.
On completion, MD usues the vehicle for minimal business use but insists on claiming relief on all running expenses.
In addition to VAT Fuel Scale Charges and IT Benefit implications, we believe that there is, potentially, a recovery of VAT on the vehicle when complete by reference to the market value of the converted vehicle on completion.
Robert Clubb & Co.
Has anyone any previous experience of similar cases?
Does Schedule 5 apply to these circumstances?
Robert Clubb & Co.
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