The forces favourite for new car bargains
In association with Cuff Miller Co Ltd, Ford Dealer to the Military

Tax-free cars

This page will be updated after Brexit.

Prior to Brexit, customers only need to register their tax-free cars in Cyprus for a minimum of 28 days (providing that the customer is entitled to import a VAT & Duty free vehicle into Cyprus and has been posted there for at least 6 months, in the case of British Forces).

If  there is a no-deal Brexit, the 28 days is expected to change to six months of owning and using the vehicle in Cyprus, followed by 12 months retention of the vehicle in UK. (Under the Transfer of Residence scheme).

If there is a deal these terms may change, depending on the deal agreed.

Either way, the current UK Customs form required, the VAT411, is likely to change to a VAT410.

How much of a car's price is VAT?

When buying a new car in the UK, VAT is added to the basic price of cars and options, currently charged at 20% .

This adds around £2000 - £3000 to the price of a typical small car.

Who qualifies for a tax-free car?

Anyone can buy a new car in the UK, complete a customs form VAT 411, and remove the new car from the UK to another EU country within two months (or complete a customs form VAT 410 if going to a country outside of the EU within six months). In either case, VAT will not be charged in the UK at time of registration, and the car is classified as being a tax-free car. (You should check on the regulations regarding importing a new car into the country you will be taking it to). After BREXIT no-one knows how this will change, but it probably will.

Can I bring a tax-free car back into the UK?

If the car is brought back permanently into the UK, VAT may be charged when the car is re-registered.

How about tax-free cars for British Forces?

A special concession for British Forces exempts them from paying the VAT on their return to the UK, provided that they have complied with the various regulations in place, such as registering the car in the country to which they exported it, and having been overseas for a minimum of six months. (Best check with your Admin Office).

Re-importing a tax-free car into the UK

Prior to leaving Cyprus, you should visit the SBA and obtain a NOVA form. On returning to the UK from Cyprus, the owner will need to surrender the Cyprus registration document, and complete a form V55/5, You will be required to show proof of insurance, in the form of a UK cover note, not a Green Card, and a valid MoT certificate, if the car is over three years old.   VED, (road tax) must also be purchased. Best to check with the Main Dealer who supplied your car, in case rules change.

Re-Registering your car in the UK

Most of our military customers tended to use the VRO at Maidstone to re-register their cars, and we recommended this office due to the efficient and knowledgeable way in which they dealt with military customers’ enquiries. Sadly, in order to save money, the governmenthas has now closed all VROs, and cars have to be re-regsitered via Swansea.

We offer free advice

If you are thinking of buying a tax-free car, please get in touch via our Contact Page, should you require any help or advice, which we are happy to provide, free of charge.