VAT reclaim on vehicles

[sdj1704]

Am I right in saying that it is possible to reclaim the VAT on the purchase of a Mitsubishi Warrior truck? I seemed to remember from reading somewhere that as they could hold an X amount in the back they qualified as a commercial vehicle.

However I also seemed to think I read somewhere that this loophole was to be closed (if what I am saying about the reclaim is correct at all)

At the end of the day though surely to reclaim the VAT on the cost of the vehicle, the vehicle must be 100% business use anyway?
Does this goes also for SMART cars also? a friend of mine bought one a few months back and the dealer said they could reclaim the VAT, however its not for business use so surely this cannot be put through the business with the VAT reclaimed?

[paultaylor@vatease.c]

A vehicle that weighs more than 3 tonnes unladen or is designed to carry a payload of more than one tonne is not a motor car for VAT purposes.

The payload is defined as the difference between a vehicles kerb weight and maximum gross weight.

If the Mitsubishi can carry more than a tonne then it may be possible to reclaim VAT. However it will still need to have been bought for a business purpose. If there is any private use (such as travelling to and from the usual place of business) then you should either restrict your input VAT claim appropriately or declare output VAT on the deemed supply.

I have not checked but I would doubt very much that a SMART car would qualify as a commercial vehicle so it would be subject to the normal restriction on input VAT on cars.

Regards
Paul Taylor
http://www.vatease.co.uk/