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Paragraph 3 F1

United Kingdom

Changes not yet applied. Later legislation changes this provision in ways not yet written into the text below:

(1)

A contract falls within this paragraph if it relates only to a motor vehicle and—

(a)

the vehicle is let on hire on relevant benefit terms to a person, and

(b)

the supply of the vehicle to that person is zero-rated for the purposes of the Value Added Tax Act 1994 as a result of it being a supply falling within—

(i)

paragraph (f) in item 2 in Group 12 in Schedule 8 to that Act, or

(ii)

item 2A in that Group.

(2)

“Relevant benefit terms” is to be construed in accordance with paragraph (2) of item 15 in Group 12 in Schedule 8 to the Value Added Tax Act 1994 (zero-rating).

Annotations

Textual amendments

F1

Sch. 7A para. 3 and cross-heading substituted (with effect in accordance with s. 81(2) of the amending Act) by Finance Act 2026 (c. 11), s. 81

Notes on Schedule 7A

Textual amendments

F1

Sch. 7A inserted (1.10.1994) by S.I. 1994/1698, art. 5

Notes on Part I

Textual amendments

F1

Sch. 7A inserted (1.10.1994) by S.I. 1994/1698, art. 5