Bare Trust & VAT Recovery

VAT recovery, CAs and finance interest

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Client buys a van for £20k + VAT and in his own personal name. Say he paid a 10% deposit and the rest is on finance over 4 years. He has a Ltd Co which is VAT registered and the van is for the companies use.

If he drafts a bare trust saying he is buying it on behalf of the company can the company claim the input tax, AIA and the finance interest through the P&L even though the invoice is not in the Ltd Co name?? 

Any comment would be appreciated.




Replies (4)

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By pacta
03rd Sep 2016 15:35


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By tom123
03rd Sep 2016 17:18


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By bumpdinkwhallop
03rd Sep 2016 18:12

Id sat yes for vat as the bare trust would detail the date of the transaction and that the individual (legal owner) is buying it on behalf of the benefical owner (Ltd Co)

The same would be for the CAs & interest chucked into P&L HOWEVER fact that the finance company is involved is making me hesitate but im sure it would be fine.

Id assume you would email the bare trust to the client to sign and get them to scan and email back so you have 3rd party evidence that the trust was actually created on the date the actual purchase took place but keen to hear what others experience has been in tbe past!!

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By lionofludesch
03rd Sep 2016 20:18

I'd be happy to claim, though I'd be interested in knowing the reasons.

For instance, keeping it in his own name to prevent a claim from a creditor is less convincing than the company not being able to obtain credit.

The former might indicate that the "bare trust" does not reflect reality.

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