# The Value Added Tax (Consideration for Fuel Provided for Private Use) Order 2006

S.I. 2006/868 · made 22 March 2006

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 .

Made under: Value Added Tax Act 1994 (Section 57)

PDFs: Printed copy https://openlegislation.uk/value-added-tax-consideration-for-fuel-provided-for-private-use-order-2006/pdf/uksi_20060868_en.pdf; Explanatory Memorandum https://openlegislation.uk/value-added-tax-consideration-for-fuel-provided-for-private-use-order-2006/pdf/uksiem_20060868_en.pdf

## Introductory text

VALUE ADDED TAX
Made 22nd March 2006
Laid before the House of Commons 22nd March 2006
Coming into force 1st May 2006
The Treasury make the following Order in exercise of the powers conferred by section 57(4) of the Value Added Tax Act 1994 :

## 1 

(1) This Order may be cited as the Value Added Tax (Consideration for Fuel Provided for Private Use) Order 2006 and comes into force on 1st May 2006.
(2) It takes effect in relation to a taxable person from the beginning of his first prescribed accounting period beginning after 30th April 2006.

## 2 

For Table A in section 57 of the Value Added Tax Act 1994 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 less
1040
260
86
More than 2000
1325
331
110
Any other type of engine
1400 or less
1095
273
91
More than 1400 but not more than 2000
1385
346
115
More than 2000
2035
508
169

## Signature

Tom Watson
Dave Watts
Two of the Lords Commissioners of Her Majesty’s Treasury
22nd March 2006

## 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 .
The Order increases those flat rates by an average of 10 per cent for diesel vehicles and 11 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 1994 was last amended .
This Order gives effect to Article 2 of Council Decision 86/356/EEC (of 21July 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 2006.
A full regulatory impact assessment has not been produced for this instrument as it has no impact on business, charities or voluntary bodies.

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Source: https://www.legislation.gov.uk/uksi/2006/868 (the official version)
Page: https://openlegislation.uk/value-added-tax-consideration-for-fuel-provided-for-private-use-order-2006
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.