Section 81 Insurance premium tax relief limited to adapted vehicles

In Schedule 7A to FA 1994 (insurance premium tax: contracts that are not taxable), for paragraph 3 (and the italic heading before it) substitute—

“Contracts relating to motor vehicles let on relevant benefit terms

3

(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).”

The amendment made by this section has effect in relation to contracts relating to leases of motor vehicles where the lease commences on or after—