Bring back a car to UK

Author
Discussion

scrubberamit

Original Poster:

35 posts

187 months

Tuesday 15th April 2014
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Hi chaps
Wondering if you can help at all..

Colleague of mine has lived here for 4 years... And has owned a RHD car for 2 years which he bought from UK brand new and exported it to Geneva and as a result paid Swiss tax at time of purchase, and NO UK VAT.

He will be going back to UK in Summer of this year and is wondering if he will have to pay any VAT / import tax on the car when taking it back

Any ideas?

MogulBoy

2,989 posts

230 months

Tuesday 15th April 2014
quotequote all
It sounds like he should be OK as it will be treated as one of his possessions - but he may need to keep it for at least a year in the UK before selling it, if that is on his radar.

Not sure if it still exists but I beleive that there used to be a scheme whereby returning expats could arrange to purchase a car to coincide with their return and bz doing so, they could avoid paying any VAT on it (ie. neither UK or Swiss) but I never saw the detail in writing and it may have been restricted to those who work for one of the International agencies...

I can't see how it would have worked though as when I bought a Disco tax free in the UK three years ago, it was in effect pre-registered in the UK and given a number plate with an X prefix plate and I then had 12 months to export it (or face the UK VAT bill). When I got to Switzerland, I had to pay and then be able to prove that I had paid the Swiss VAT before I could register it here (and I was able to send that proof back to Swansea to show that I had exported it) thereby completing the circle.





Edited by MogulBoy on Tuesday 15th April 11:14

scrubberamit

Original Poster:

35 posts

187 months

Wednesday 16th April 2014
quotequote all
Ok tx mate - I didnt think he would have to pay but let's see... otherwise there will be a 2 yr old DBS Carbon edition on sale in Geneva!!

MogulBoy

2,989 posts

230 months

Wednesday 16th April 2014
quotequote all
Very good.

Another snippet of info (possibly worthless)...

For as long as I can remember (25-30yrs?) I have seen "Swiss Taxes paid" frequently mentioned in adverts for high end cars, mainly classics. I have assumed that this means that if a car has been registered in CH at one point, there is a permanent record that VAT has been paid once and therefore, if that car is ever re-imported back into the country, it may be possible to avoid paying VAT 'for a second time'. I'm not totally sure about this but I think that such an arragement would be unique and would not work in reverse. e.g. a car supplied new in the UK and registered there but subseqently exported would always potentially be liable to UK VAT on some basis if re-imported (unless exempt if treated as someone's personal possessions upon relocation as in your mates case).