Value Added Tax (Special Provisions) Order 1992
| Jurisdiction | UK Non-devolved |
| Citation | SI 1992/3129 |
1992 No. 3129
VALUE ADDED TAX
The Value Added Tax (Special Provisions) 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), 18(7), 19(1) 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 Act (Special Provisions) Order 1992, and shall come into operation on 1st January 1993.
Interpretation
2. In this Order—
“the Act” means the Value Added Tax Act 1983;
“the Manx Act” means the Value Added Tax and Other Taxes Act 19732;
“aircraft mortgage” means a mortgage which is registered in accordance with the Mortgaging of Aircraft Order 19723and by virtue of which an aircraft is made security for a loan;
“caravan” includes a motor caravan but does not include a caravan of a description specified in item (1) of Group 11 of Schedule 5 to the Act;
“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;
“firearms” means rifles, shotguns, pistols (including revolvers) and air guns but does not include a weapon specified by section 5(1) of the Firearms Act 19684
“insurer” means a person permitted, in accordance with section 2 of the Insurance Companies Act 19825, to effect and carry out contracts of insurance against risks of loss of or damage to goods;
“marine mortgage” means a mortgage which is registered in accordance with the Merchant Shipping Act 18946and by virtue of which a boat (but not any share thereof) is made a security for a loan;
“motor cycle” includes a motor bicycle, motor tricycle or motor scooter (whether or not a sidecar is attached), a bicycle or tricycle with an attachment for propelling it by mechanical means and any mechanically propelled vehicle with three wheels capable of accommodating only one person;
“printed matter” includes printed stationery but does not include anything produced by typing, duplicating or photo-copying;
“works of art”, “antiques” and “collectors' pieces” means the following goods—
(a) paintings, drawings and pastels, executed by hand, other than hand-painted or hand-decorated manufactured articles;
(b) original engravings, prints and lithographs;
(c) original sculptures and statuary, in any material;
(d) antiques, of an age exceeding one hundred years, except pearls and loose gem stones;
(e) collection and collectors' pieces of zoological, botanial, mineralogical, anatomical, historical, archaeological, paleontological or ethnographic interest.
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 any of the goods described in paragraph (3) below by a person who repossessed them under the terms of a finance agreement;
(b)
(b) the disposal of any of the goods described in paragraph (3) below by an insurer who has taken possession of them in the settlement of a claim under a policy of insurance;
(c)
(c) the disposal of a boat by a mortgagee after he has taken possession thereof under the terms of a marine mortgage;
(d)
(d) the disposal of an aircraft by a mortgagee after he has taken possession thereof under the terms of an aircraft mortgage;
if, in each case, the goods so disposed of are in the same condition at the time of disposal as they were when they were repossessed or taken into possession, as the case may be, and if a supply of them in the United Kingdom by the person from whom in each case they were obtained would not have been chargeable with tax, or would have been chargeable with tax on less than the full value of such supply.
(2) Paragraph (1) of this article shall not apply to reimported goods which were previously exported from the United Kingdom or the Isle of Man free of tax chargeable under the Act or value added tax chargeable under Part I of the Manx Act by reason of the zero-rating provisions of the Act or the Manx Act or regulations made thereunder, or to imported goods which have not borne tax chargeable under either of those Acts in the United Kingdom or the Isle of Man.
(3) The goods referred to in paragraphs (a) and (b) of paragraph (1) above are as follows:
(a)
(a) works of art, antiques and collectors' pieces;
(b)
(b) motor cycles;
(c)
(c) caravans;
(d)
(d) boats and outboard motors;
(e)
(e) electronic organs;
(f)
(f) aircraft;
(g)
(g) firearms.
5.—(1) Subject to paragraph (2) below, there shall be treated as neither a supply of goods nor a supply of services the following supplies by a person of assets of his business—
(a)
(a) their supply to a person to whom he transfers his business as a going concern where—
(i) the assets are to be used by the transferee in carrying on the same kind of business, whether or not as part of any existing business, as that carried on by the transferor, and
(ii) in a case where the transferor is a taxable person, the transferee is already, or immediately becomes as a result of the transfer, a taxable person or a person defined as such in section 2(2) of the Manx Act;
(b)
(b) their supply to a person to whom he transfers part of his business as a going concern where—
(i) that part is capable of separate operation,
(ii) the assets are to be used by the transferee in carrying on the same kind of business, whether or not as part of any existing business, as that carried on by the transferor in relation to that part, and
(iii) in a case where the transferor is a taxable person, the transferee is already, or immediately becomes as a result of the transfer, a taxable person or a person defined as such in section 2(2) of the Manx Act.
(2) A supply of assets shall not be treated as neither a supply of goods nor a supply of services by virtue of paragraph (1) above to the extent that it consists of—
(a)
(a) a grant which would, but for an election which the transferor has made, fall within item 1 of Group 1 of Schedule 6 to the Value Added Tax Act 19837; or
(b)
(b) a grant of a fee simple which falls within paragraph (a) of item 1 of Group 1 of Schedule 6 to the Value Added Tax Act 1983,
unless the transferee has made an election in relation to the land concerned which has effect on the relevant date and has given any written notification of the election required by paragraph 3(6) of Schedule 6A to the Value Added Tax Act 19838 no later than the relevant date.
(3) In paragraph (2) of this article—
“election” means an election having effect under paragraph 2 of Schedule 6A to the Value Added Tax Act 1983;
“relevant date” means the date upon which the grant would have been treated as having been made or, if there is more than one such date, the earliest of them;
“transferor” and “transferee” include a relevant associate of either respectively as defined in paragraph 3(8) of Schedule 6A to the Value Added Tax Act 1983.
(4) There shall be treated as neither a supply of goods nor a supply of services the assignment by an owner of goods comprised in a hire-purchase or conditional sale agreement of his rights and interest thereunder, and the goods comprised therein, to a bank or other financial institution.
To continue reading
Request your trial