TAX TITBITS - 08.06.2006

Booze cruise news

Seizure rules. If you are found to be breaking the rules by bringing back excise goods for resale to others at a profit, then the goods will be seized. However, the Taxman will now (providing small quantities are involved) offer you the option of having them returned to you for a sum which includes the excise duty payable, plus a small penalty. Vehicles used will not be seized but you will be warned that any future offences cases may result in seizure of the vehicle. So why do it?

Personal use exemption. If there were two of you travelling, personal use would easily stretch to 25 cartons of cigarettes between you. Let’s say the cost of 200 cigarettes is in the region of £13, the shop price might be £52 and the “in the pub” price £33. So some people can make £20 per carton (pub price - cost price) profit. On 25 cartons that’s a total profit of £500! Which might well cover more than the cost of any day trip.

Tip. If you do break the rules and are asked to “open your boot/bag please” do so safe in the knowledge that you can now pay the duty and keep the goods (and the vehicle used to transport them if relevant). His seize and not return policy has come to an end.

Go to the Taxman’s website to check on the allowances for tax-free goodies. However, if you do exceed them the good news is that his seize and not return policy has come to an end.

© Indicator - FL Memo Ltd

Tel.: (01233) 653500 • Fax: (01233) 647100

subscriptions@indicator-flm.co.ukwww.indicator-flm.co.uk

Calgarth House, 39-41 Bank Street, Ashford, Kent TN23 1DQ

VAT GB 726 598 394 • Registered in England • Company Registration No. 3599719