1992 No. 630

VALUE ADDED TAX

The Value Added Tax (Treatment of Transactions) Order 1992

Made

Laid before the House of Commons

Coming into force

The Treasury, in exercise of the powers conferred on them by section 3(3) of the Value Added Tax Act 19831 and of all other powers enabling them in that behalf, hereby make the following Order:

I11

This Order may be cited as the Value Added Tax (Treatment of Transactions) Order 1992 and shall come into force on 1st April 1992.

Annotations:
Commencement Information
I1

Art. 1 in force at 1.4.1992, see art. 1

I22

Where an employer gives an employee a choice between—

a

a particular rate of wages, salary or emoluments, or

b

in the alternative a lower rate of wages, salary or emoluments and, in addition, the right to the private use of a motor car provided by the employer,

and the employee chooses the alternative described in paragraph (b) above, then the provision to the employee of the right to use the motor car privately shall be treated as neither a supply of goods nor a supply of services (if it otherwise would be) to the extent only that the consideration for the provision of the motor car for the employee’s private use is the difference between the wages, salary or emoluments available to him under paragraphs (a) and (b) of this article.

Annotations:
Commencement Information
I2

Art. 2 in force at 1.4.1992, see art. 1

Gregory KnightThomas SackvilleTwo of the Lords Commissioners of Her Majesty’s Treasury

(This note is not part of the Order)

The effect of this Order is that value added tax will no longer be levied in respect of amounts of salary, wages or other emoluments forgone by employees in return for the right to the private use of a motor car provided by their employer.

This Order has no effect in relation to supplies for which the consideration is in a form other than a salary sacrifice.