Company Cars - VAT on Maintenance Contract

Celt07

Registered User
Messages
50
Currently have a few company cars on contract hire agreements. There is a maintenance agreement on them also so the monthly payment is made up of rental (+ 21% VAT) and maintenance (+ 13.5% VAT). I'm aware that VAT cannot be reclaimed on the rental element but what is the position with regard to the maintenance element? Can anyone clarify?