Explanatory note

(This note is not part of the Order)

VAT is payable if road fuel of a business is used for private motoring. The VAT due must be calculated using flat-rate values related to engine type and size^f1.

This Order reduces those flat-rates by an average of 6 per cent for diesel vehicles and 7 per cent for those using other fuels. This reflects the reduction in road fuel costs which has occurred since Table A in section 57 of the Value Added Tax Act 1994 (c. 23) was last amended^f2.

The new rates apply to any relevant accounting period starting after 30th April 2002^f3.

Annotations

Footnotes

f1: Sections 56 and 57 of the Value Added Tax Act 1994.
f2: Table A was last substituted by S.I. 2001/736.
f3: See articles 1(2) and 2 of the Order.