Consequential Amendments

Clause 2 – in the House of Commons at 8:35 pm on 25th November 1992.

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Motion made and Question proposed, That the clause stand part of the Bill.

Photo of Andrew Smith Andrew Smith Shadow Spokesperson (Treasury) 8:45 pm, 25th November 1992

The effect of subsection (5)(1A) will be to require certificates relating to vehicles leased to the handicapped to be retained. Why is that? What does it mean? Will the Minister assure me that that in no way adversely affects access to and use of cars by disabled people?

Photo of Mr Anthony Nelson Mr Anthony Nelson , Chichester

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.

Question put and agreed to.

Clause 2 ordered to stand part of the Bill.

Clauses 3 to 6 ordered to stand part of the Bill.

Bill reported, without amendment.

Motion made, and Question, That the Bill be now read the Third time, put forthwith pursuant to Standing Order No. 75 (Third Reading), and agreed to.

Bill accordingly read the Third time, and passed.