Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to the Answer of 14 January 2021 to Question 134263 on UK Internal Trade: Northern Ireland, what recent discussions he has had with the European Commission on the VAT Margin Scheme.

In order to provide certainty for businesses and to continue to support the Northern Ireland second-hand car market, the Government introduced the Second-Hand Motor Vehicle Payment Scheme on 1 May 2023. The scheme ensures that for cars moved after May 1 2023, businesses selling in NI will pay the same net amount of VAT as if they had continued access to the VAT margin scheme for these cars.

The Government is regularly engaging collaboratively with the EU as we implement the Windsor Framework.