I don’t know the VAT rules but I’ve read time and time again about what they call the car luxury tax that’s an extra tax put on car sales over £40,000.
People are being hit by this tax because of the long delays in delivery of there cars where when they ordered the car and the on the road cost was £38,500 and over the time before delivery the manufacture has increase the retail by £2,000 bringing the car into the luxury tax bracket.
The taxman being the taxman has also made it impossible to avoid this tax because even if the dealer gave you a big discount taking the price down below the threshold DVLA, taxman and manufacturer agree the retail price between them and the customer pays the tax agreed between those bodies if the price goes above the threshold set and is paid at the retail price on the day of delivery not when the order contract was signed or the price agreed at that time.
Let’s hope the little Hunt don’t bring those rules into VAT this week. ?