The voluntary disclosure deadline for licensed motor car traders (LMCTs) to declare incorrectly obtained duty exemptions for motor vehicles registered and/or used as service demonstrator or loan vehicles has been extended from Thursday 31 May 2018 to Tuesday 31 July 2018.
LMCTs can voluntarily disclose, before Tuesday 31 July 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.
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. 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.