Commentary

700/31/99 Pawnbrokers: disposals of pledged goods

Part V8 HMRC Notices
Part V8 HMRC Notices | Commentary

700/31/99 Pawnbrokers: disposals of pledged goods

Part V8 HMRC Notices | Commentary

700/31/99
Pawnbrokers: disposals of pledged goods

May 1999

1 What this notice covers

This notice explains how pawnbrokers should account for VAT on disposals of goods pledged as security for a loan.

2 Redeemed pledges

There is no supply for VAT purposes if someone redeems a pledge within the agreed redemption period. You should not account for VAT on the redemption.

Main narrative treatment—V3.114.

3 Unredeemed pledges

You should follow the procedure set out below for any agreements entered into after 19 May 1985. The relevant law is in the Consumer Credit Act 1974 ss 120, 121.

(a) Loans not exceeding £75 (£25 prior to 1 May 1998) with

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