To ask the Chancellor of the Exchequer, whether his Department has made an assessment of the potential impact of the replacement of the VAT margin scheme on small car dealerships.
Answered on
23 October 2023
In order to provide certainty for businesses and to continue to support the Northern Ireland second-hand car market, the Government introduced the Second-Hand Motor Vehicle Payment Scheme on 1 May 2023. The scheme ensures that for cars moved after May 1 2023, businesses selling in NI will pay the same net amount of VAT as if they had continued access to the VAT margin scheme for these cars.
The Government is regularly engaging collaboratively with the EU as we implement the Windsor Framework.
Answered by
Treasury