This article is more than 1 year old
Opportunity for voluntary disclosure by licensed motor car traders
Published on 08 March 2018
Some licensed motor car traders (LMCTs) have incorrectly obtained a duty exemption for motor vehicles registered and/or used as service demonstrator or service loan vehicles.
LMCTs can voluntarily disclose, before Thursday 31 May 2018, any motor vehicles they have incorrectly obtained a duty exemption on over the last five years. By doing this, they will reduce the amount of penalty tax payable to 5 per cent, plus interest on any outstanding duty, from up to 90 per cent, which would be payable without a voluntary disclosure.
Under the Duties Act 2000, the exemption from duty is only on demonstrator vehicles used exclusively for the purpose of sale of another vehicle of the same class.
Motor vehicles, such as those used for a range of business or private purposes, including, for example, customer loans, service, workshop and deliveries, promotion and use by directors, employees and their family members are not exempt from duty.
