Explanatory note

The Value Added Tax (Input Tax) Order 1992 (S.I. 1992/3222) restricts recovery of Value Added Tax on most business cars, goods and services used for business entertainment and fixtures in new homes. This Order amends the definition of “motor car” in the Value Added Tax (Input Tax) Order 1992.

Article 2 excludes from the definition of “motor car” vehicles which would otherwise meet the requirements of sub-paragraph (b)(ii), but which can seat fewer than 12 passengers solely because they have been adapted for wheelchair users. The effect of the amendment is to enable certain types of transport which have been adapted for wheelchair users to qualify for VAT credit, where such credit wasn’t previously available. It also makes a minor numerical amendment.

A full and final Impact Assessment has not been produced for this instrument as a negligible impact on the private or voluntary sectors is foreseen.