A TRIBUNAL has allowed recovery of VAT on a personalised registration because it helped to promote a business. The registration was not directly linked to the name of the consultancy business, Shaw Associates, but the tribunal decided it helped to create the right image for the company.

Deloitte & Touche says such claims are usually rejected by Customs and Excise and warns that the right to recovery in such cases would still be challenged. However, it recommends that anyone who has bought, or is considering buying, a personalised plate for a business car should now consider making a claim for the VAT incurred.

A Customs spokesman said: 'We reluctantly accept that some advertising can be done through number plates, but we do not accept this case as a precedent and are not changing our guidelines. It was the individual facts of the case that allowed them to win it.' The DVLA says a growing number of companies are cashing in on the marketing value of buying personalised registrations for their vehicles.