{
  "url": "https://openlegislation.uk/value-added-tax-cars-order-1992/article-4",
  "json_url": "https://openlegislation.uk/value-added-tax-cars-order-1992/article-4.json",
  "legislation": "uksi/1992/3122",
  "legislation_title": "The Value Added Tax (Cars) Order 1992",
  "legislation_url": "https://openlegislation.uk/value-added-tax-cars-order-1992",
  "path": "article/4",
  "kind": "article",
  "number": "4",
  "heading": "Treatment of transactions",
  "text": "(1) Subject to paragraphs (1A) to (2) below, each of the following descriptions of transactions shall be treated as neither a supply of goods nor a supply of services–\n(a) the disposal of a used motor car by a person who repossessed it under the terms of a finance agreement, where the motor car is in the same condition as it was in when it was repossessed;\n(b) the disposal of a used motor car by an insurer who has taken it in the settlement of a claim under a policy of insurance, where the motor car is disposed of in the same condition as it was in when it was so taken;\n(c) the disposal of a motor car for no consideration....\n(d) services in connection with a supply of a used motor car provided by an agent acting in his own name to the purchaser of the motor car the consideration for which is taken into account by virtue of article 8(8) below in calculating the price at which the agent sold the motor car;\n(e) services in connection with the sale of a used motor car provided by an auctioneer acting in his own name to the vendor or the purchaser of the motor car the consideration for which is taken into account by virtue of article 8(9) below in calculating the price at which the auctioneer obtained (or as the case may be) sold the motor car;\n(f) a relevant supply of services by a taxable person to whom a motor car has been let on hire or supplied or by whom a motor car has been ... imported.\n(1A) Paragraph (1) above shall not apply in relation to a case falling within paragraph (1)(a) to (c) above unless the tax on any previous supply... or importation was wholly excluded from credit under section 25 of the Act.\n(1AA) Paragraph (1)(a) above shall not apply where adjustment, whether or not made under regulation 38 of the Value Added Regulations 1995, has taken account, or may later take account, of VAT on the initial supply under the finance agreement as a result of repossession and the motor car delivered under that agreement was delivered on or after 1st September 2006.\n(1B) Paragraph (1) above shall not apply in relation to a case falling within paragraph (1)(f) above unless the tax on any previous letting on hire, supply... or importation was wholly or partly excluded from credit under section 25 of the Act.\n(1C) For the purposes of paragraph (1)(f) above a relevant supply of services is—\n(a) the letting on hire of a motor car to any person for no consideration or for a consideration which is less than that which would be payable in money if it were a commercial transaction conducted at arms length; or\n(b) the making available of a motor car (otherwise than by letting it on hire) to any person (including, where the taxable person is an individual, himself, and where the taxable person is a partnership, a partner) for private use, whether or not for a consideration.\n(2) Nothing in paragraph (1)(a) or (b) above shall be construed as meaning that a transaction is not a supply for the purposes of paragraph 3(1)(a) of Schedule 9ZA to the Act.",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Words in art. 4(1) inserted (1.8.1995) by The Value Added Tax (Cars) (Amendment) (No. 2) Order 1995 (S.I. 1995/1667), arts. 1, 3(a)"
    },
    {
      "type": "F",
      "label": "F2",
      "text": "Words in art. 4(1)(c) omitted (1.8.1995) by virtue of The Value Added Tax (Cars) (Amendment) (No. 2) Order 1995 (S.I. 1995/1667), arts. 1, 3(b)"
    },
    {
      "type": "F",
      "label": "F3",
      "text": "Art. 4(1)(d)(e) inserted (1.6.1995) by The Value Added Tax (Cars) (Amendment) Order 1995 (S.I. 1995/1269), arts. 1, 4(c)"
    },
    {
      "type": "F",
      "label": "F4",
      "text": "Art. 4(1)(f) added (1.8.1995) by The Value Added Tax (Cars) (Amendment) (No. 2) Order 1995 (S.I. 1995/1667), arts. 1, 3(c)"
    },
    {
      "type": "F",
      "label": "F5",
      "text": "Words in art. 4(1)(f) omitted (31.12.2020) by virtue of The Value Added Tax (Miscellaneous Amendments and Revocations) (EU Exit) Regulations 2019 (S.I. 2019/59), regs. 1, 5(2)(a)(ii); S.I. 2020/1641, reg. 2, Sch."
    },
    {
      "type": "F",
      "label": "F6",
      "text": "Art. 4(1A)-(1C) inserted (1.8.1995) by The Value Added Tax (Cars) (Amendment) (No. 2) Order 1995 (S.I. 1995/1667), arts. 1, 3(d)"
    },
    {
      "type": "F",
      "label": "F7",
      "text": "Word in art. 4(1A) omitted (31.12.2020) by virtue of The Value Added Tax (Miscellaneous Amendments and Revocations) (EU Exit) Regulations 2019 (S.I. 2019/59), regs. 1, 5(2)(b); S.I. 2020/1641, reg. 2, Sch."
    },
    {
      "type": "F",
      "label": "F8",
      "text": "Art. 4(1AA) inserted (13.4.2006) by The Value Added Tax (Cars) (Amendment) Order 2006 (S.I. 2006/874), arts. 1, 3"
    },
    {
      "type": "F",
      "label": "F9",
      "text": "Word in art. 4(1B) omitted (31.12.2020) by virtue of The Value Added Tax (Miscellaneous Amendments and Revocations) (EU Exit) Regulations 2019 (S.I. 2019/59), regs. 1, 5(2)(b); S.I. 2020/1641, reg. 2, Sch."
    },
    {
      "type": "F",
      "label": "F10",
      "text": "Words in art. 4(2) substituted (1.8.2021) by The Value Added Tax (Amendment) (EU Exit) Regulations 2021 (S.I. 2021/715), regs. 1, 11"
    },
    {
      "type": "I",
      "label": "I1",
      "text": "Art. 4 in force at 1.1.1993, see art. 1"
    },
    {
      "type": "footnote",
      "label": "f1",
      "text": "Section 8A was inserted by the Finance (No. 2) Act 1992 (c. 48), section 14 and Schedule 3 paragraph 10."
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/1992/3122/article/4",
    "retrieved_at": "2026-10-29T14:09:34.737584+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}