The Car Tax (Amendment) Regulations 1991

4.  After regulation 23 there shall be inserted—

“Registered persons and vehicles undergoing examination or tests

23A.— (1) Subject to the provisions of this regulation, the Commissioners may remit the tax on any vehicle or, if the tax has been paid, repay it, where—

(a) a registered person—

(i) makes the vehicle in the United Kingdom and appropriates it to his own use,

(ii) imports the vehicle into the United Kingdom and registers it, or

(iii) acquires the vehicle in the United Kingdom in an unused condition from another,

and, at the time he appropriates, registers or, as the case may be, acquires the vehicle he intends it to be used only by him or on his behalf and only to undergo examination or tests for the purpose of industrial or commercial research; and

(b) such examination or tests do not constitute a sales promotion.

(2) Where paragraph (1)(a)(iii) above applies, repayment of the tax shall not be made unless the registered person holds documentary evidence of the amount of tax paid.

(3) Where the tax has been remitted or repaid under this regulation, it shall be a condition that the vehicle is—

(a) identified in a record which relates only to vehicles in respect of which tax has been remitted or repaid under this regulation;

(b) used only in accordance with the intention mentioned in paragraph (1)(a) above; and

(c) either—

(i) destroyed during the course or at the conclusion of the examination or tests, or

(ii) returned to production or stock at the conclusion of the examination or tests.”