Statutory Instruments
2006 No. 874
VALUE ADDED TAX
The Value Added Tax (Cars) (Amendment) Order 2006
Made
22nd March 2006
Laid before the House of Commons
22nd March 2006
Coming into force
13th April 2006
The Treasury make the following Order in exercise of the powers conferred by section 5(3) of the Value Added Tax Act 1994( 1 ):
1. This Order may be cited as the Value Added Tax (Cars) (Amendment) Order 2006 and shall come into force on 13th April 2006 in relation to finance agreements entered into on or after that date.
2. The Value Added Tax (Cars) Order 1992 ( 2 ) (“the principal Order”) is amended as follows.
3. After article 4(1A) insert—
“ (1AA) Paragraph (1)(a) above shall not apply where adjustment, whether or not made under regulation 38 of the Value Added Regulations 1995 ( 3 ) , has taken account, or may later take account, of VAT on the initial supply under the finance agreement as a result of repossession and the motor car delivered under that agreement was delivered on or after 1 st September 2006. ”
4. For the purposes of article 1 above, “finance agreement” has the meaning given in article 2(1) of the principal Order.
Tom Watson
Dave Watts
Two of the Lords Commissioners of Her Majesty’s Treasury
22nd March 2006
S.I. 1992/3122 ; relevant amending instruments are S.I. 1995/1269 , 1995/1667 .
S.I. 1995/2518 as amended by S.I. 1997/1086 .