COUNCIL IMPLEMENTING DECISION (EU) 2019/2230 of 19 December 2019 amending Decision 2007/884/EC authorising the United Kingdom to continue to apply a measure derogating from Articles 26(1)(a), 168 and 169 of Directive 2006/112/EC on the common system of value added tax
Currently, the United Kingdom is limiting to 50% the right to deduct VAT charged on hired or leased cars in cases where the cars are not wholly used for business purposes. The United Kingdom is also authorized not to treat as a supply of services for consideration the private use of a car that has been hired or leased for business purposes, so that hirers and lessees do not have to account for VAT on the actual private mileage of each car. The application of this derogation has now been extended until 31 December 2022 (or until the end of the transitional period if the United Kingdom leaves the European Union in accordance with the Withdrawal Agreement).
Source European Commission