FTT Allows Luxurico to Recover VAT on Hypercar Acquisition

The FTT in Luxurico Ltd v HMRC [2026] UKFTT 1252 (TC) allowed Luxurico’s appeal against HMRC’s refusal of input VAT recovery on a hypercar purchase/import.
HMRC said the car was bought for personal enjoyment and should be blocked from input tax recovery.
The tribunal found the objective evidence showed the main intended use was commercial hire through Luxurico’s luxury vehicle hire business.
Because the vehicle was intended for self-drive or chauffeur hire, the Article 7(1) restriction did not apply.
Luxurico therefore proved its entitlement to recover the input VAT.

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.