The Value Added Tax (Consideration for Fuel Provided for Private Use) Order 2003

Statutory Instruments

2003 No. 1057

VALUE ADDED TAX

The Value Added Tax (Consideration for Fuel Provided for Private Use) Order 2003

Made

9th April 2003

Laid before the House of Commons

9th April 2003

Coming into force

1st May 2003

The Treasury, in exercise of the powers conferred on them by section 57(4) of the Value Added Tax Act 1994(1) and of all other powers enabling them in that behalf, hereby make the following Order:

1.—(1) This Order may be cited as the Value Added Tax (Consideration for Fuel Provided for Private Use) Order 2003 and comes into force on 1st May 2003.

(2) It takes effect in relation to a taxable person from the beginning of his first prescribed accounting period beginning after 30th April 2003.

2.  For Table A in section 57 of the Value Added Tax Act 1994(2) 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	900	225	75
More than 2000	1,135	283	94
Any other type of engine
1400 or less	950	237	79
More than 1400 but not more than 2000	1,200	300	100
More than 2000	1,770	442	147

Jim Fitzpatrick

John Heppell

Two of the Lords Commissioners of Her Majesty’s Treasury

9th April 2003

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(3).

This Order increases those flat-rates by an average of 6.1 per cent for diesel vehicles and 5.0 per cent for those 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 (c. 23) was last amended(4).

The new rates apply to any relevant accounting period starting after 30th April 2003(5).

(1)

1994 c. 23.

(2)

Table A was last substituted by S.I. 2002/1099.

(3)

Sections 56 and 57 of the Value Added Tax Act 1994.

(4)

Table A was last substituted by S.I 2002/1099.

(5)

See articles 1(2) and 2 of the Order.