The key points on the margin scheme for second-hand goods are:

(1)parts of the official notices on the margin scheme have the force of law (¶48-700);

(2)the goods must be ‘eligible goods’, which are:

(a)tangible movable property (TMP) suitable for further use as it is or after repair;

(b)works of art;

(c)collectors’ items; and


The definition of the above items is in Notice 718, para. 20 (2017 edn).

The definition of ‘second-hand goods’ is in Value Added Tax (Input Tax) Order 1992 (SI 1992/3222), art. 2, Value Added Tax (Special Provisions) Order 1995 (SI 1995/1268), art. 2(1) and Directive 2006/112, art. 311.

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