{
  "url": "https://openlegislation.uk/value-added-tax-consideration-for-fuel-provided-for-private-use-order-2007/note",
  "json_url": "https://openlegislation.uk/value-added-tax-consideration-for-fuel-provided-for-private-use-order-2007/note.json",
  "legislation": "uksi/2007/966",
  "legislation_title": "The Value Added Tax (Consideration for Fuel Provided for Private Use) Order 2007",
  "legislation_url": "https://openlegislation.uk/value-added-tax-consideration-for-fuel-provided-for-private-use-order-2007",
  "path": "note",
  "kind": "note",
  "number": null,
  "heading": "Explanatory note",
  "text": "(This note is not part of the Order)\nVAT is payable if road fuel of a business is used for private motoring. The VAT due has previously been calculated using flat rate values relating to engine type and size which are set out in Table A of section 57 of the Value Added Tax Act 1994. Section 57(4) provides that a new table may be substituted for Table A and new tables have been substituted annually to ensure the flat rates reflect the increase in road fuel costs.\nSection 54(4A) gives power to substitute Table A by a table which describes vehicles by reference to their CO2 emissions figure. Section 54(4C)(b) permits the Table to be supplemented by Notes.\nThe Order substitutes a new table supplemented by Notes for Table A which applies flat rate values to vehicles based on their CO2 emissions. Where a vehicle does not have a CO2 emissions figure the Notes to the Table apply a CO2 emissions figure by reference to the vehicle’s engine size.\nThe flat rates have been calculated in line with the average cost of fuel applicable in March 2007.\nThe Order gives effect to Articles 1 and 2 of Council Decision 659/2006/EC (of 25th September 2006). The Council Decision authorises the United Kingdom to fix the proportion of value added tax relating to expenditure on fuel used for private purposes in business cars on a flat rate basis. The proportion of tax is required to be expressed in fixed amounts and established on the basis of the CO2 emissions level of the type of vehicle that reflect fuel consumption. The amounts are to be adjusted annually to reflect changes in the average cost of fuel.\nThe new rates apply to any relevant accounting period starting after 30th April 2007.\nSection 57 of the Value Added Tax Act 1994 was amended by section 2 of the Finance (No.2) Act 2005 and the amendments come into force on 1st May 2007 .\nA full regulatory impact assessment of the effect that this instrument will have on the costs of business and the voluntary sector is available at www.hmrc.gov.uk and is annexed to the Explanatory Memorandum which is available alongside the instrument on the OPSI website.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "footnote",
      "label": "f1",
      "text": "1994 c.23; section 57 was amended by section 2 of the Finance (No.2) Act 2005 (c.22)."
    },
    {
      "type": "footnote",
      "label": "f2",
      "text": "Table A was last substituted by S.I. 2006 No. 868."
    },
    {
      "type": "footnote",
      "label": "f3",
      "text": "OJ No L272, 3.10.2006, p15."
    },
    {
      "type": "footnote",
      "label": "f4",
      "text": "See articles 1(1) and (2) of the Order."
    },
    {
      "type": "footnote",
      "label": "f5",
      "text": "The Finance (No. 2) Act, Section 2(7), (Appointed Day) Order 2007, S.I. 2007 No. 946(C.38)."
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/2007/966/note",
    "retrieved_at": "2026-10-29T03:56:37.127244+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."
}