Quarterly News

Out with the Old, in with the New

If your business van reminds you of the era of 'Steptoe and Son' or 'Only Fools and Horses' maybe it's time to take advantage of a government backed incentive scheme, which is aimed at trading in old vehicles for new lower emission ones.

The scheme is available for personal and business purchases and applies to cars as well as vans. The incentive comes in the form of a £2,000 subsidy - £1,000 per vehicle from the Department for Business, Innovation and Skills, matched by a further £1,000 subsidy from the manufacturer. No subsidy is available at all if the manufacturer has not joined the scheme but as 41 have joined there is plenty of choice. Some manufacturers and dealers are even offering an additional subsidy or discount.

Are you eligible?

The vehicle being traded in must:

• be a car or small van weighing up to 3.5 tonnes
• have been registered in the UK on or before 31 August 1999
• be registered with the DVLA or DVA in the business's or individual's name
• have been registered to you or the business continuously for 12 calendar months before the order date of the new vehicle
• have a UK address on the registration certificate (V5C)
• have a current MOT test certificate before the date of order for the new vehicle (or within 14 days of expiry at the time of order)
• have a current tax disc when the order for the new vehicle is placed (or within 14 days of expiry at the time of order)
• be insured when the order for the new vehicle is placed.

The new vehicle you want to buy must be:

• a car or small van weighing up to 3.5 tonnes
• first registered in the UK on or after the 18 May 2009
• declared new at first registration in the UK with no former keepers
• a UK specification vehicle.

When trading in your old vehicle for a new vehicle the registered keeper for both vehicles must be the same.

Prompt action is recommended to take advantage before the £300 million of funds set aside run out! Even if the funds last, they are only available until 28 February 2010. Please contact us if you would like information on the VAT and capital allowance aspects of any proposed new purchases.

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