Consequential Amendments

Part of Clause 2 – in the House of Commons at 8:45 pm on 25th November 1992.

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Photo of Mr Anthony Nelson Mr Anthony Nelson , Chichester 8:45 pm, 25th November 1992

I can give the hon. Gentleman that assurance. Manufacturers of vehicles which are leased to the handicapped, as is done through Motability, are required to hold a certificate issued by the lessor, which is exclusively Motability, that the vehicle is intended to be supplied zero-rated for VAT purposes, in which case the vehicle can be supplied free of car tax. But if the vehicle is later supplied in other circumstances—for example, within three years—the taxes would become payable. Therefore, it is necessary for the certificate to be retained as proof of the tax-free status of the vehicle. It is really for VAT purposes rather than for car tax purposes and will not have any impact, adverse or otherwise, on the availability of such cars to the disabled.