2004 No. 776
VALUE ADDED TAX
The Value Added Tax (Consideration for Fuel Provided for Private Use) Order 2004
Made
Laid before the House of Commons
Coming into force
The Treasury, in exercise of the powers conferred on them by section 57(4) of the Value Added Tax Act 19941, 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 2004 and comes into force on 1st May 2004.
(2)
It takes effect in relation to a taxable person from the beginning of his first prescribed accounting period beginning after 30th April 2004.
2.
For Table A in section 57 of the Value Added Tax Act 19942 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 | 865 | 216 | 72 |
More than 2000 | 1095 | 273 | 91 |
Any other type of engine | |||
1400 or less | 930 | 232 | 77 |
More than 1400 but not more than 2000 | 1175 | 293 | 97 |
More than 2000 | 1730 | 432 | 144 |
John Heppell
Nick Ainger
Two of the Lords Commissioners of Her Majesty’s Treasury
(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 size3.
This Order reduces those flat-rates by an average of 3.74 per cent for diesel vehicles and 2.25 per cent for those using other fuels. This reflects the decrease in road fuel costs which has occurred since Table A in section 57 of the Value Added Tax Act 1994 (c. 23) was last amended4.
The new rates apply to any prescribed accounting period starting after 30th April 20045.