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Paragraph 15 F1F2

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

(1)

The sale of a motor vehicle that had been let on hire on relevant benefit terms, where such sale constitutes the first supply of the vehicle after the end of the period of such letting.

(2)

A vehicle has been let on hire on relevant benefit terms if—

(a)

the letting on hire was to a disabled person in receipt of—

(i)

a relevant disability benefit by virtue of entitlement to the mobility component of that benefit,

(ii)

an armed forces independence payment, or

(iii)

mobility supplement,

(b)

the letting was for a period of not less than 3 years,

(c)

the vehicle was unused at the commencement of the period of letting, and

(d)

the consideration for the letting consists wholly or partly of sums paid to the lessor by a relevant authority on behalf of the lessee in respect of—

(i)

the mobility component of a relevant disability benefit,

(ii)

armed forces independence payment, or

(iii)

mobility supplement.

(3)

For the purposes of paragraph (2)—

  • “relevant authority” means—

    1. (a)

      the Department for Work and Pensions,

    2. (b)

      the Ministry of Defence,

    3. (c)

      the Scottish Ministers, or

    4. (d)

      the Department for Communities in Northern Ireland;

  • “relevant disability benefit” means—

    1. (a)

      disability living allowance,

    2. (b)

      personal independence payment,

    3. (c)

      Child Disability Payment,

    4. (d)

      Adult Disability Payment, or

    5. (e)

      Scottish Adult Disability Living Allowance.

Annotations

Textual amendments

F1

Sch. 8 Pt. 2 Group 9 item 1 substituted (6.4.2013) by Finance Act 2012 (c. 14), Sch. 26 paras. 4(2), 7(2)

F2

Sch. 8 Group 12 item 15 substituted (with effect in accordance with s. 80(5) of the amending Act) by Finance Act 2026 (c. 11), s. 80(3)(a)(5)

Notes on Part II

Modifications

C1

Sch. 8 Pt. 2 modified (temp. until 31.3.2027) (1.10.2026) by The Value Added Tax (Supplies of Domestic Electricity) Order 2026 (S.I. 2026/987), arts. 1(1), 3(3) (with art. 1(2))

Notes on Chapter Group 12— Drugs, medicines, aids for the disabled,

Textual amendments

F2

Word in Sch. 8 Pt. 2 Group 12 heading substituted (with effect in accordance with Sch. 7 para. 9 of the amending Act) by Finance Act 2017 (c. 10), Sch. 7 para. 7(c)

Modifications

C1

Sch. 8 Pt. 2 Group 12 modified (temp.) (9.10.2023) by The Value Added Tax (Drugs and Medicines) Order 2023 (S.I. 2023/1006), arts. 1(1), 2 (with art. 1(2))