(1)After section 5 of the [1983 c. 53.] Car Tax Act 1983 there shall be inserted the following section—
(1)This section applies where on the date when, apart from subsection (2)(a) below, tax on a chargeable vehicle would become due from a person registered under this Act, there is held by him or on his behalf a certificate of a person to whom the vehicle is sold (“the lessor”) that the lessor intends to supply the vehicle to another in such circumstances that the supply will be a zero-rated supply by virtue of item 12 of Group 14 (letting on hire of motor vehicles to the handicapped) of Schedule 5 to the [1983 c. 55.] Value Added Tax Act 1983.
(2)Tax on the vehicle—
(a)shall not be payable by the registered person, but
(b)if, within the period of three years beginning with that date, the lessor supplies the vehicle in any circumstances other than those mentioned in subsection (1) above, shall be payable by the lessor and shall become due and payable at the time of the supply.
(3)In this section—
“certificate” means a certificate in a form for the time being approved by the Commissioners, and
“supply” has the same meaning as in the Value Added Tax Act 1983.”
(2)In section 5 of the Car Tax Act 1983 (liability and payment), in subsection (1), at the end of paragraph (a), there shall be inserted the words “subject to section 5A below”.
(3)The powers conferred by Schedule 1 to that Act to require accounts and records to be preserved and produced shall be exercisable also in relation to any certificate which has been held by or on behalf of a registered person for the purposes of section 5A of that Act.
(4)In paragraph 13 of that Schedule (restriction on registration of chargeable vehicles), after sub-paragraph (c) there shall be inserted “or
(d)that, by virtue of section 5A of this Act, tax on it has not become due and payable.”