Car Dealerships – HMRC interest: Negative Equity Deals - VAT Implication

In recent weeks the Centurion VAT Team are noting an increase in the level of VAT inspections in the sector. The resulting enquiries are in respect of arrangements between dealerships and finance houses, regarding the sale value of vehicles where there is negative equity in the finance arrangement of the vehicles being part exchanged.

Should you have clients or are a dealership where such VAT concerns have arisen do contact Andrew Norris at Centurion VAT who’d be happy to discuss the matter further.