1992 No. 630
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:
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This Order may be cited as the Value Added Tax (Treatment of Transactions) Order 1992 and shall come into force on 1st April 1992.
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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.
(This note is not part of the Order)