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The Value Added Tax (Consideration for Fuel Provided for Private Use) Order 2005

S.I. 2005/722 · Made 16 March 2005

Original text. legislation.gov.uk does not revise statutory instruments, so later amendments are not shown here. Changes made to it are listed under each provision when known.

VALUE ADDED TAX

Made 16th March 2005

Laid before the House of Commons 16th March 2005

Coming into force 1st May 2005

The Treasury, in exercise of the powers conferred upon them by section 57(4) of the Value Added Tax Act 1994f1, hereby make the following Order:

Annotations to the whole text

Footnotes

f1

1994 c. 23.

Contents

  1. 1Article 1
  2. 2Article 2
  3. Signature
  4. Explanatory note

1

(1)

This Order may be cited as the Value Added Tax (Consideration for Fuel Provided for Private Use) Order 2005 and comes into force on 1st May 2005.

(2)

It takes effect in relation to a taxable person from the beginning of his first prescribed accounting period beginning after 30th April 2005.

2

For Table A in section 57 of the Value Added Tax Act 1994f1 substitute–

TABLE A

Description of vehicle (Type of engine and cylinder capacity in cubic centimetres)12 month period £3 month period £1 month period £
Diesel engine
2000 or less94523678
More than 20001200300100
Any other type of engine
1400 or less98524682
More than 1400 but not more than 20001245311103
More than 20001830457152

Signature

Jim Murphy

Nick Ainger

Two of the Lords Commissioners of Her Majesty’s Treasury

16th March 2005

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 increases those flat rates by an average of 9.4 per cent for diesel vehicles and 5.8 per cent for vehicles using other fuels. This reflects the increase in road fuel costs which has occurred since Table A in section 57 of the Value Added Tax Act 1994f2 was last amended f3.

This Order gives effect to Article 2 of Council Decision 86/356/EECf4 (of 21 July 1986 authorising the United Kingdom to apply flat-rate measures in respect of the non-deductible value added tax charged on fuel expenditure in company cars) which requires the flat rates to be adjusted annually in line with changes in the average cost of fuel.

The new rates apply to any relevant accounting period starting after 30th April 2005f5.

A full regulatory impact assessment has not been produced for this instrument as it has no impact on business, charities or voluntary bodies.