News

FBHVC Trade Supporter JD Classics Holdings Ltd (JDHC) has been successful in an appeal against HM Revenue and Customs. The solicitor handling the case was Martin Emmison of Goodman Derrick LLP, another Trade Supporter, and a third Trade Supporter, Jeremy Barker of CARS UK Ltd, appeared at the tribunal which took place in London on 11 & 12 March. The decision of the tribunal was published on 10 June.

Over a period, JDCH had imported several classic cars, mainly Jaguars under the “collectors’ item” tariff that allows zero import duty and a reduced rate of VAT. In 2008, HMRC informed JDCH that a substantial six-figure sum was owed as they considered that the cars did not qualify for treatment as collectors’ items, and therefore import duty and full rate VAT was due. After various submissions had failed, JDCH appealed and the tribunal hearing the case found in their favour. This may not be the end of the story, since HMRC has 56 days in which to decide whether or not to appeal to a higher authority - which they may well do since decisions of tribunals do not set binding precedents.

This is topical for FBHVC since newsletter 3/2010 contained a brief note reporting that there had been a change to the wording of the guidelines that HM Revenue and Customs officials use when deciding whether an old vehicle being imported from outside EU qualifies as a collectors’ item. The revised wording of the relevant section of the ‘Explanatory Note to the Combined Nomenclature’ can be found on this website under FAQ/Other Topics/Valuation & VAT.