Value Added Tax (Cars) (Amendment) (No. 2) Order 1995
| Jurisdiction | UK Non-devolved |
| Citation | SI 1995/1667 |
1995 No. 1667
VALUE ADDED TAX
The Value Added Tax (Cars) (Amendment) (No. 2) Order 1995
Made 29th June 1995
Laid before the House of Commons 30th June 1995
Coming into force 1st August 1995
The Treasury, in exercise of the powers conferred on them by sections 5(3), 5(5), 43(2) and 50A of the Value Added Tax Act 19941and of all other powers enabling them in that behalf, hereby make the following Order:
1. This Order may be cited as the Value Added Tax (Cars) (Amendment) (No. 2) Order 1995 and shall come into force on 1st August 1995.
2. The Value Added Tax (Cars) Order 19922shall be amended in accordance with articles 3 to 8 of this Order.
3. In article 4—
(a) at the beginning of paragraph (1) there shall be inserted “Subject to paragraphs (1A) to (2) below,”;
(b) in sub-paragraph (c) of paragraph (1) the words “where” to the end shall be deleted;
(c) after sub-paragraph (e)3of paragraph (1) there shall be added the following—
“(f)
“(f) a relevant supply of services by a taxable person to whom a motor car has been let on hire or supplied or by whom a motor car has been acquired from another member State or imported.”; and
(d) after paragraph (1) there shall be inserted the following—
“1A Paragraph (1) above shall not apply in relation to a case falling within paragraph (1)(a) to (c) above unless the tax on any previous supply, acquisition or importation was wholly excluded from credit under section 25 of the Act.
1B Paragraph (1) above shall not apply in relation to a case falling within paragraph (1)(f) above unless the tax on any previous letting on hire, supply, acquisition or importation was wholly or partly excluded from credit under section 25 of the Act.
1C For the purposes of paragraph (1)(f) above a relevant supply of services is—
(a) the letting on hire of a motor car to any person for no consideration or for a consideration which is less than that which would be payable in money if it were a commercial transaction conducted at arms length; or
(b) the making available of a motor car (otherwise than by letting it on hire) to any person (including, where the taxable person is an individual, himself, and where the taxable person is a partnership, a partner) for private use, whether or not for a consideration.”
4. After article 4 there shall be inserted the following—
“4A. Paragraph 5(4) of Schedule 4 to the Act shall not apply in relation to a motor car to which either article 5 or article 6 below applies which is used or made available in circumstances where, but for the operation of that paragraph, it would be treated by virtue of one or other of those articles as supplied to and by a taxable person.”.
5. For article 5 there shall be substituted the following—
“1 This article applies to any motor car—
(a) which has been produced by a taxable person otherwise than by the conversion of a vehicle obtained by him;
(b) which has been produced by the taxable person by the conversion of another vehicle (whether a motor car or not) and in relation to which the condition in paragraph (2) below is satisfied; or
(c) which was supplied to, or acquired from another member State or imported by, a taxable person and in relation to which the condition in paragraph (2) below is satisfied,
but does not apply to any motor car to which article 6 below applies.
2 The condition referred to in paragraph (1)(b) and (c) above is that the tax on the supply to, or acquisition or importation by, the taxable person of the motor car or the vehicle from which it was converted, as the case may be, was not wholly excluded from credit under section 25 of the Act.
3 Where a motor car to which this article applies—
(a) has not been supplied by the taxable person in the course or furtherance of a business carried on by him; and
(b) is used by him such that it is not used exclusively for the...
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