Explanatory note

This Order removes from the scope of value added tax disposals by pawn-brokers of goods to the pawnor within three months of the property in the goods passing to the pawnbroker under section 120(1)(a) of the Consumer Credit Act 1974. Any such disposals would otherwise be a supply of goods and would be chargeable with tax under section 2(1) of the Value Added Tax Act 1983.