Explanatory note

This Order, which comes into effect on 1 August 1992, amends the Value Added Tax (Cars) Order 1980 (“the Cars Order”). It revokes article 2(a) of the Value Added Tax (Cars) (Amendment) Order 1992, and replaces the new sub-paragraph (e) of article 4(1) of the Cars Order.

The Order enables private taxi firms, self-drive hire firms and driving schools to reclaim the tax on purchases of motor cars for their businesses. It also allows tax to be reclaimed by taxable persons who let cars on hire to persons who carry on such businesses, but are not taxable persons.