SCHEDULES

SCHEDULE 6U.K. Valuation: special cases

[F11A(1)Where—U.K.

(a)the value of a supply made by a taxable person for a consideration is (apart from this sub-paragraph) less than its open market value,

(b)the taxable person is a motor manufacturer or motor dealer,

(c)the person to whom the supply is made is—

(i)an employee of the taxable person,

(ii)a person who, under the terms of his employment, provides services to the taxable person, or

(iii)a relative of a person falling within sub-paragraph (i) or (ii) above,

(d)the supply is a supply of services by virtue of sub-paragraph (4) of paragraph 5 of Schedule 4 (business goods put to private use etc),

(e)the goods mentioned in that sub-paragraph consist of a motor car (whether or not any particular motor car) that forms part of the stock in trade of the taxable person, and

(f)the supply is not one to which paragraph 1 above applies,

the Commissioners may direct that the value of the supply shall be taken to be its open market value.

(2)A direction under this paragraph shall be given by notice in writing to the person making the supply, but no direction may be given more than 3 years after the time of the supply.

(3)A direction given to a person under this paragraph in respect of a supply made by him may include a direction that the value of any supply—

(a)which is made by him after the giving of the notice, or after such later date as may be specified in the notice, and

(b)as to which the conditions in paragraphs (a) to (f) of sub-paragraph (1) above are satisfied,

shall be taken to be its open market value.

(4)In this paragraph—

(5)The vehicles excluded by this sub-paragraph are—

(a)vehicles capable of accommodating only one person;

(b)vehicles which meet the requirements of Schedule 6 to the Road Vehicles (Construction and Use) Regulations 1986 and are capable of carrying twelve or more seated persons;

(c)vehicles of not less than three tonnes unladen weight (as defined in the Table to regulation 3(2) of the Road Vehicles (Construction and Use) Regulations 1986);

(d)vehicles constructed to carry a payload (the difference between—

(i)a vehicle’s kerb weight (as defined in the Table to regulation 3(2) of the Road Vehicles (Construction and Use) Regulations 1986), and

(ii)its maximum gross weight (as defined in that Table)),

of one tonne or more;

(e)caravans, ambulances and prison vans;

(f)vehicles constructed for a special purpose other than the carriage of persons and having no other accommodation for carrying persons than such as is incidental to that purpose.

(6)For the purposes of this paragraph a motor car is a “qualifying motor car”if—

(a)it has never been supplied, acquired from another member State, or imported in circumstances in which the VAT on that supply, acquisition or importation was wholly excluded from credit as input tax by virtue of an order under section 25(7) (as at 17th March 2004 see article 7 of the Value Added Tax (Input Tax) Order 1992); or

(b)a taxable person has elected under such an order for it to be treated as such.

(7)The Treasury may by order amend any of the definitions in this paragraph.]

Textual Amendments

F1Sch. 6 para. 1A inserted (1.1.2005 with effect in accordance with s. 22(5) of the amending Act) by Finance Act 2004 (c. 12), s. 22(2); S.I. 2004/3104, art. 2; S.I. 2004/3104, art. 2