16/07/2026
Dear Client,
The VAT Margin Scheme in the UK allows dealers to not charge VAT on the whole price of the second-hand vehicles, meaning that there may not be VAT to reclaim on the price of the vehicle. This must be stated in the purchase agreement. Please confirm with the seller if this scheme is used before purchase so you are aware of this for your records.
For further reading see https://www.gov.uk/guidance/using-the-vat-margin-scheme-for second-hand-vehicles
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