Council Implementing Decision (EU) 2016/2265 of 6 December 2016 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.
The United Kingdom is authorised, until 31 December 2019, to restrict to 50 % the right of the hirer or lessee to deduct input VAT on charges for the hire or lease of a car where that car was not used entirely for business purposes. The United Kingdom was also authorised not to treat as supplies of services for consideration the private use of a car hired or leased by a taxable person for his business purposes. Those measures (‘the derogating measures') removed the need for the hirer or the lessee to keep records of private mileage travelled in business cars and to account for tax on the actual private mileage of such cars.
3