UK Import - private to trade....

M

martind10

Registered User
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6
Hi All,

I am considering importing from the UK with a view to sell.
I plan on getting all the checks, and registering and paying VRT straight away. Then put on the market and hope to make a profit.
Something along the lines of Honda Accord, BMW 320D etc.

My question is, where is the line between private seller and dealer in this situation?
Lets say I imported 2 cars to sell, or 3 or 4??
Am I legally obliged to report any profits?
Are profits taxable after VRT??

Any views are welcome.
 
I've seen this issue before.

The bottom line is that if your intention is to sell immediately with a view to making a profit, even the sale of the 1st car is trading, and any profit after all expenses such as VRT is taxable.
 
Thanks RS2K

Is there a cut off point for this - still seems a little hazy.
Point is that I dont intend to go into it in a big way.

eg Buy a car, use it personnally but advertise for sale at the same time.
If after 6 weeks or 6 months I sell at a profit, I would probably consider doing it again.

In theory if anyone sells a car at a profit for whatever reason should it be declared?
Not very practical in reality.
 
I agree it's a bit hazy. If you import and use the car yourself for a bit it's less likely to be viewed as trading. However if you put it up for sale immediately a question as to your motive could be asked if it came to it.

The amount of transactions isn't that important tbh.
 
There's also the aspect of warranty. I believe if you sell more than a certain no. of cars per year (six?) you're classified as a dealer & then fall under warranty/merchantable goods territory. You're no longer classified as a private seller. Can't find a link to back this up I'm afraid.
 
ah, so it looks like there is a cut off point ... 6 cars per year.
I appreciate you are not sure on this, if you can find the feedback I'd much appreciate it
 
martind10 said:
Hi All,

I am considering importing from the UK with a view to sell.
I plan on getting all the checks, and registering and paying VRT straight away. Then put on the market and hope to make a profit.
Something along the lines of Honda Accord, BMW 320D etc.

My question is, where is the line between private seller and dealer in this situation?
Lets say I imported 2 cars to sell, or 3 or 4??
Am I legally obliged to report any profits?
Are profits taxable after VRT??

Any views are welcome.
Click to expand...

Yes, you are legally obliged to report any profits, as this is taxable income in exactly the same way as the profit from the sale of any goods or assets is taxable.

There is no fixed rule as to how many cars you have to import before being classed as a trader, however the Revenue do monitor the registration of imports and if they see regular transactions and registrations in your name without you being a registered garage/dealer then they can (and frequently do) investigate further.
 
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