On 7th October 2016 the UK was authorised, by the European Commission, to continue to apply the 50% VAT recovery limit on the lease or hire of cars for private and business purposes.

This new permission will commence on the 1st January 2017 and will remain valid until the 31st December 2019.

The last authorisation for this treatment in the UK was made in 2013 (the first was given in 1995), but it only had effect until 31st December 2016 and so will expire in the next three months.  This new legislation will preserve the treatment for another 3 years.

By |October 31st, 2016|