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Posted by Bill Davies [Email] (more from Bill Davies) on Wed, 3 Feb 2010 11:40:59 Share Post by Email
In Reply to: Are Euro car taxes built into the price? nm, AlS, Wed, 3 Feb 2010 10:51:24
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Here in the UK the prices for cars would normally include 17½% VAT, and *might* also include on-the-road costs like delivery charges, dealer preparation, registration charges and so forth - as you can imagine not all advertisements are created equal but the information is usually there somewhere, albeit in one-point print.

For commercial vehicles, like my VW Transporter Kombi, VAT registered traders can usually reclaim the VAT so these are advertised with the VAT separate, even for used vehicles - unless the seller isn't VAT-registered (like a private seller) in which case he/she effectively limits his market - or has to drop the price - because a trade or business buyer can't reclaim the VAT element. Law of unintended consequences, I guess.

There are various taxation schemes to take money off people who are provided with cars by their employers but luckily the self-employed like me have a reasonably clear run, I can write the capital cost down over a period, and reduce my income tax by accounting for my finance and running costs after deducting an amount for personal use.

On the other hand, we don't have the same donation opportunities I think you have the other side of the pond. However, under the Gift Aid scheme, if I give items to charity and provide the correct details the charity itself can normally reclaim the tax, which is great.

We still have a scrappage scheme here (similar to cash for clunkers) until 28th February, and this has mostly benefited dealers selling microscopic Korean cars to geriatrics*. Of course, using the Scrappage scheme locks you out of other discounts, so it only makes real sense for cheap cars, especially as the used car market is currently quite buoyant here.

*I am allowed to say this, nearly qualifying myself

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