Statutory Instruments
2021 No. 1023
Value Added Tax
The Value Added Tax (Treatment of Transactions) (Revocation) Order 2021
Made
9th September 2021
Laid before the House of Commons
10th September 2021
Coming into force
21st October 2021
The Treasury, in exercise of the powers conferred by section 5(3)(c) of the Value Added Tax Act 1994( 1 ), make the following Order:
Citation, commencement and effect
1. This Order may be cited as the Value Added Tax (Treatment of Transactions) (Revocation) Order 2021 and comes into force on 21st October 2021.
2. —(1) Where —
(a) an employer is providing an employee with the right to use a motor car privately under a contract entered into before 21st October 2021 that does not exceed three years in duration, and
(b) before 21st October 2021, the employer has reduced the price of the supply as a direct and sole consequence of being refunded the amount of VAT chargeable on the supply under section 41(3) of the Value Added Tax Act 1994,
article 3 only has effect in relation to supplies made under any subsequent contract entered into on or after 21st October 2021.
(2) In all other cases, article 3 has effect in relation to supplies made on or after 21st October 2021.
Revocation of the Value Added Tax (Treatment of Transactions) Order 1992
3. The Value Added Tax (Treatment of Transactions) Order 1992( 2 ) is revoked.
Michael Tomlinson
Rebecca Harris
Two of the Lords Commissioners of Her Majesty’s Treasury
9th September 2021
1994 c. 23 . The Value Added Tax (Treatment of Transactions) Order 1992 ( S.I. 1992/630 ) was made under section 3(3) of the Value Added Tax Act 1983 (c. 55) , that section was repealed by paragraph 1 of Schedule 15 to the Value Added Tax Act 1994 and re-enacted in section 5(3) of the Value Added Tax Act 1994.
S.I. 1992/630 .