@kezo If I am understanding that table correctly, we won’t have to pay VAT on our Early Termination Fees as the contracts commenced prior to the changes?
No – column 1 (before July 26) VAT on some in life costs.
I’ve looked again. Column 1 for ‘VAT on some in life costs’ clearly says ‘zero rate’ if the car was handed over before 1st July 2026, which our cars were. In life costs only become eligible for VAT if the car is handed over after 1st July, regardless of when the car was ordered. On that basis we should not be liable, but if they take a different view I will use the argument that we are VAT exempt anyway due to my wife being a full time wheelchair user and the car has a permanent and substantial adaptation. It’s only £50 but …… 😂