Value Added Tax (Cars) Order 1992
| Jurisdiction | UK Non-devolved |
| Citation | SI 1992/3122 |
1992 No. 3122
VALUE ADDED TAX
The Value Added Tax (Cars) Order 1992
Made 9th December 1992
Laid before the House of Commons 11th December 1992
Coming into force 1st January 1993
The Treasury, in exercise of the powers conferred on them by sections 3(3), 3(5), 18(1), 18(2), 18(3), 18(4), 18(5), 18(6) and 29(2) of the Value Added Tax Act 19831and of all other powers enabling them in that behalf, hereby make the following Order:
Citation and commencement
1. This Order may be cited as the Value Added Tax (Cars) Order 1992 and shall come into force on 1st January 1993.
Interpretation
2. In this Order–
“the Act” means the Value Added Tax Act 1983;
“car dealer” means a taxable person who carries on a business which consists of or includes the sale of motor cars;
“finance agreement” means an agreement for the sale of goods whereby the property in those goods is not to be transferred until the whole of the price has been paid and the seller retains the right to repossess the goods;
“insurer” means a person permitted, in accordance with section 2 of the Insurance Companies Act 19822to effect and carry out contracts of insurance against risks of loss of or damage to goods;
“motor car” means any motor vehicle of a kind normally used on public roads which has three or more wheels and either–
(a) is constructed or adapted solely or mainly for the carriage of passengers; or
(b) has to the rear of driver’s seat roofed accommodation which is fitted with side windows or which is constructed or adapted for the fitting of side windows;
but does not include–
(i) vehicles capable of accommodating only one person or suitable for carrying twelve or more persons;
(ii) vehicles of not less than three tonnes unladen weight;
(iii) caravans, ambulances and prison vans;
(iv) vehicles of a type approved by the Assistant Commissioner of Police of the Metropolis conforming to the conditions of fitness for the time being laid down by him for the purposes of the London Cab Order 19343; or
(v) vehicles constructed for a special purpose other than the carriage of persons and having no other accommodation for carrying persons than such as is incidental to that purpose.
Revocations
3. The provisions specified in the first column of the Schedule to this Order are hereby revoked to the extent specified in the second column of that Schedule.
Treatment of transactions
4.—(1) Each of the following descriptions of transactions shall be treated as neither a supply of goods nor a supply of services–
(a)
(a) the disposal of a used motor car by a person who repossessed it under the terms of a finance agreement, where the motor car is in the same condition as it was in when it was repossessed;
(b)
(b) the disposal of a used motor car by an insurer who has taken it in the settlement of a claim under a policy of insurance, where the motor car is disposed of in the same condition as it was in when it was so taken;
(c)
(c) the disposal of a motor car for no consideration where, on a previous supply of the motor car or on its acquisition from another member State or on its importation, tax charged thereon had been excluded from any credit by virtue of an order made under section 14(10) of the Act.
(2) Nothing in paragraph (1)(a) or (b) above shall be construed as meaning that a transaction is not a supply for the purposes of section 8A(1) (a) of the Act4.
Self-supplies
5.—(1) This article applies to the following motor cars produced or obtained by a taxable person in the course or furtherance of any business carried on by him, that is to say–
(a)
(a) any motor car produced by him otherwise than by the conversion of a vehicle obtained by him;
(b)
(b) any motor car produced by him by the conversion of another vehicle (whether a motor car or not) and in respect of which the conditions specified in paragraph (2) below are satisfied;
(c)
(c) any motor car obtained by him and in respect of which the conditions specified in paragraph (2) below are satisfied.
(2) The conditions mentioned in paragraph (1) above are–
(a)
(a) that the motor car or other vehicle was supplied to the taxable person or was acquired by him from another member State or was imported by him; and
(b)
(b) tax was chargeable on that supply, acquisition or importation; and
(c)
(c) the taxable person is entitled to credit for that tax under sections 14 and 15 of the Act.
(3) Save in the case of a motor car to which article 6 below applies, where a motor car to which this article applies–
(a)
(a) is neither supplied by the taxable person in the course or furtherance of any business carried on by him, nor converted into another vehicle (whether a motor car or not) in the course of furtherance of that business; but
(b)
(b) is used by him for the purpose of that business,
the motor car shall be treated for the purposes of the Act as both supplied to him for the purposes of that business and supplied by him in the course or furtherance of that business, except where the Commissioners are satisfied that the motor car is, or is to be, used solely for the purpose of research and development in his business as a producer of motor cars (other than as a producer of motor cars solely by the conversion of vehicles).
6.—(1) Where a motor car is supplied to a taxable person or is acquired by a taxable person from another member State or is imported by a taxable person, primarily for the purpose of–
(a)
(a) being provided by him for hire with the services of a driver for the purpose of carrying passengers; or
(b)
(b) being provided by him for self-drive hire; or
(c)
(c) being used as a vehicle in which instruction in the driving of a motor car is to be given by him; or
(d)
(d) the letting on hire to a person who is not a taxable person on condition that he uses the motor car primarily for one of the purposes described in sub-paragraphs (a) to (c) above,
and it is neither supplied by the taxable person in the course or furtherance of any business carried on by him, nor converted into another vehicle (whether a motor car or not), in the course or furtherance of that business, but it is used by him for the...
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