Hi community,
I am purchasing a Toyota LC300 (private use) and will be doing a GVM upgrade. The upgrade will result in the vehicle being converted to an NB1 category vehicle.
Based on the 2023 definition of a luxury vehicle, I will have to pay LCT.
However, JMAXX have told me that if the vehicle is reclassified as an NB1, I do not have to pay LCT.
Example 1 - principal purpose - vehicles with minor modifications
33. Derek sells luxury cars and is modifying a 4x4 off-road wagon with seating capacity for 7 people, including the driver. The car is classified as an MC category passenger vehicle at the time it is manufactured.
34. Derek modifies the car by:
• repainting the car to include reflective stripes and the customer's business logo
• reducing the car's seating capacity from 7 passengers to 5 passengers by removing 2 of the passenger seats and their anchorage points and mounting plate
• increasing the car's GVM by upgrading the car's suspension and differentials.
35. The modifications will result in the majority of the car's load capacity being available to carry goods. The car will be reclassified from an MC category passenger vehicle to an NB1 category goods vehicle.
36. On review of each of the modifications, and having regard to each of the factors listed in paragraph 13 of this Determination, it is considered that:
• The GVM upgrade will have minimal effect on the design of the car, as the upgrade merely involves the replacement of existing parts with improved parts.
• While a paint job may be considered permanent and changes the appearance of the car, it will not alter the design of the car or impact passenger capacity.
• Although the seating capacity of the car has been reduced, the carriage of passengers continues to be the most important and prominent of the car's design features.
• The combined effect of the modifications will allow the car to carry a slightly heavier load and will free up a small amount of additional space to carry goods.
37. The principal purpose of the car has not changed from that of carrying passengers. Accordingly, the car is still considered to be a luxury car. When Derek sells the modified car, he makes a taxable supply of a luxury car and is liable to pay any LCT.
Can someone please help me as I;'m getting mixed messages?
Thanks.
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