Is trade registered car a new car according to HMRC?

[Warburton]

Hi
I am very keen to buy the Outlander PHEV. The reason being apart from low emissions, you are entitled to Enhanced Capital Allowance(ECA) offsetting your profit as self employed to the profits. HMRC says any new car for ECA. Is trade registered new car considered a new car or should be first registered for HMRC?
Many thanks

 

[maby]

Not sure I fully understand the question. I strongly believe that the company claiming the ECA must be the first registered owner - it does not apply to second-hand vehicles - is that what you mean?

 

[Warburton]

Thanks for the reply.HMRC says it should be a new car. Can't a trade registered car say one sold by new car discount or autoebid where you get a brand new car for less be a New car according to HMRC?

 

[maby]

That, I really do not know.

 

[Hypermiler]

Hi there.
OK, given I used to work in tax I have checked the HMRC manuals:
http://www.hmrc.gov.uk/manuals/camanual/ca23153.htm

"New cars are ‘unused and not second hand’. You should accept a car is unused and not second hand even if it has been driven a limited number of miles for the purposes of testing, delivery, test driven by a potential purchaser, or used as a demonstration car."

Have to say I am a bit surprised by that! However, be careful as "limited number of miles" may not mean 5000 miles. You may want to give them a call if you have a particular car in mind.

I'm not quite sure why this section seems to apply to cars purchased by 31 March 2013 - presumably the 100% FYA has been extended but can't find the detail for that at the moment.

Cheers
H

 

[Warburton]

That's a very useful piece of information, I couldn't get definition of new car on HMRC. I spoke to them trying to clarify first registered vs self registered but the person I spoke said New Car and refused to go into the above. It does appear that I could buy a trade registered New Car and claim ECA.
Thanks very much.

 

[Posty]

Can't remember where but I do recall reading that new cars include pre reg as well as first owner cars, provided that car only has delivery miles on when you buy it.