Personal Export Scheme - Is this an unexpected Brexit Bonus

[orridge]

The Personal Export Scheme allows you to purchase a New Motorhome or used VAT Qualifying vehicle without paying the VAT if you export the vehicle and go with it for a period of time minimum of six months.

2.1 The Personal Export Scheme​

The Personal Export Scheme (PES) allows entitled customers to buy a motor vehicle in the UK free of VAT for export outside the UK. Subject to some restrictions, the vehicle can be used for a limited period in the UK before it’s exported.

Warning: it may be difficult to import motor vehicles into some countries. If you’re thinking of buying a vehicle under the scheme, you should check with the relevant Embassy or High Commission in the UK because additional restrictions, paperwork and costs may apply.

2.2 Who can buy a vehicle under the scheme​

The scheme can be used by:

(a) overseas visitors who have not been in the UK for more than either:

• 365 days in the 2 years before the date when they apply to use the scheme
• 1,095 days in the 6 years before the date when they apply to use the scheme
• who intend to leave, and stay outside, the UK with the motor vehicle for at least 6 months

(b) UK residents who intend to leave, and stay outside, the UK with the motor vehicle for at least 6 months

2.3 The type of vehicle you can supply under the scheme​

The scheme can be used to supply a new or used:

• motor vehicle
• motorcycle
• motor caravan

Previously this could be of advantage if you wanted to have an extended (six months plus) trip to New Zealand or Australia however now we are not in the EU perhaps the same option exists to take a Motorhome to Europe for 6 Months plus taking into account the 90/180 Days rules etc.

Personal Export Scheme (VAT Notice 707) - GOV.UK (www.gov.uk)

What is not clear would be any residual VAT on return to the UK.

Any thoughts ?

 

[orridge]

Also please no comments on negatives/positives about Brexit plenty of other threads for that ;-)

 

[fullfat]

Can’t beat it

 

[Speve]

It looks similar to the one that’s been used for years by armed forces when posted to Germany they could buy new cars to take with them?

 

[tacr2man]

Does it work the other way round ie from EU I believe it does from USA

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[SandraL]

As a uk resident who might go on a 6 month trip to europe, inc non schengan countries.

If you use this scheme when you export the vehicle I assume it is no longer taxed in the uk. So it would need to be registered in another country.
On reimporting the vehicle vat would be due on its current value, ie a 6 month old vehicle.
So the savings in that case would be the difference in vat between a new vehicle and a 6 month old vehicle less the cost of re registering in europe.

Do not claim to understand all this, just a quick read through of the link given.

 

[Lenny HB]

Nothing new the date of your link is 2014.

 

[MisterB]

sounds too good to be true .....

i always have the view that generally the more money someone has, the more ways there are of avoiding paying ANY tax !

and i am not saying thats a bad thing, as we would all like to avoid paying tax ! its just life !

 

[orridge]

Nothing new the date of your link is 2014.

Published 12 January 2014
Last updated 31 December 2020 — see all updates
From:HM Revenue & Customs

Updated in December 2020 to reflect leaving EU.

 

[orridge]

As a uk resident who might go on a 6 month trip to europe, inc non schengan countries.

If you use this scheme when you export the vehicle I assume it is no longer taxed in the uk. So it would need to be registered in another country.
On reimporting the vehicle vat would be due on its current value, ie a 6 month old vehicle.
So the savings in that case would be the difference in vat between a new vehicle and a 6 month old vehicle less the cost of re registering in europe.

Do not claim to understand all this, just a quick read through of the link given.

Not sure. Previously if you were exporting to say New Zealand you could use for up to 12 months in Europe once you had left the UK and the vehicle would still need to be registered and taxed as per normal.

A lot of Kiwis use this scheme just working out if it could now apply to the EU aswell.

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[Roger S]

That is certainly worth looking into, 20 per cent off ! fantastic.

Thanks

 

[stevewagner]

Looks like you have to pay VAT when you reimport

 

[Minxy]

The question is whether or not you want to bring it back to the UK, if so you'll still have to pay the missing VAT (or applicable portion of it) when you bring it back.

If you export it permanently then you'd have to pay for importing it into the country you take it to which may, or may not, work out cheaper.

 

[EuroTrotters]

It looks similar to the one that’s been used for years by armed forces when posted to Germany they could buy new cars to take with them?

And sell them on making a nice profit.

what were those sports cars they used to buy years ago ?

 

[AXO66]

This might or not apply, depending on what you’re moving about , but a bit of information that might interesting...

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[EuroTrotters]

Another fiddle.

Not sure if they can still get away with it.

People with relatives With registered disability. Would pre-order a soon to be sell out Special edition cars.

I think a special order Audi S1 was a typical example. When they arrived from the factory. They buyer would advertise for sale said car. Seller had 20% profit in the car (more than the Audi (or similar) desert did). As they could buy the motor VAT FREE!.

Seller could pocket more than 20 % as the “I WANT IT NOW” Buyers would pay a premium !