Buying and Selling Cars

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O

oliver123

  • #1
    This is one for any forumers familiar with the motor industry. The question is this, are there limits as to how many cars I can buy and sell over a period of one year? Also, do I require to have a specialist licence in order to do so. On an American website I checked this morning it said that in the States there are limits to how many cars one can deal in over a period of one year. I should qualify the above by stating that this would be in the manner of a private buyer and seller and NOT a limited company.

    Thanks in advance.
     
    H

    Homer J Simpson

  • #3
    If you're doing it for profit, it's a business - you are NOT a private buyer/seller you are simply choosing not to be Ltd (incorporated) which is a different thing entirely.

    Trading standards & HMRC will view you and treat you as a business.
     
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    9

    90DC

  • #4
    I used to live next door to a bloke who bought cars and sold them from the pavement outside the front of his garden and he said he'd been doing it for seven years. The cars were generally valued under £1000 and were gone within a week. I don't think he ever told HMRC or had dealings with TS.

    From my point of view, it's definately worthwhile to pay your tax. You wouldn't want to get stung in the future when you've built up some kind of wealth, would you?

    Some people argue that the cars are coming into their private possession and therefore, it is a private thing. However, from a moral perspective, and I am sure Trading Standards and HMRC will see it from a different way, it is best to be honest.
     
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    9

    90DC

  • #7
    greenshaw said:
    You can sell up to 7 vehicles from your private property each year. Anything over 7 is classed as a commercial venture.
    Click to expand...

    Never heard of this. But obviously, the cars can be bought and sold in your partner's name and you can change them (Your Partner) more often than seven times a year if you're fortunate enough to be as good lucking as me. Not that I've ever tried.
     
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    B

    businessfunding

  • #8
    There is no definitive figure - either number of vehicles or profit, it is all own to intent.

    If you buy a single vehicle to sell at a profit it is a business transaction, whereas if you chop in 10 cars because you are bore or they are unreliable all are private transactions.

    If you actually are dealing itmight be in your interests to have trae plates and trader insurance at which point it becomes ifficult to pretend to be a private seller.
     
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