Commentary

V16.911 VAT—supplies of goods under finance agreements

Part V16 Forms and other HMRC material

V16.911 VAT—supplies of goods under finance agreements

V16.911 VAT—supplies of goods under finance agreements

Information Sheet 5/06, March 2006

This Information Sheet explains the changes announced in the Budget to close a loophole in the VAT treatment of goods sold, for a second time, by finance companies.

1 Introduction

This Information Sheet explains the changes announced in the Budget to close a loophole in the VAT treatment of goods sold, for a second time, by finance companies.

VAT Information Sheet 5/04 set out the High Court judgment in General Motors Acceptance Corporation UK Ltd (CH/2003/APP/0230). In the light of this decision the Government has announced that the VAT (Cars) Order 1992 and the VAT (Special Provisions) Order 1995 are to be amended. The changes remove the entitlement of finance companies to treat returned goods as “neither a supply

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