After section 5 of the Car Tax Act 1983 there shall be inserted, as from 1st April 1989, the following section—
Relief where vehicle leased to the handicapped.
5A.—(1) This section applies where—
- (a) a person registered under this Act sends out from any premises of his in the United Kingdom a chargeable vehicle made or imported by him, and,
- (b) at the time when he sends it out he holds a certificate of the person to whom it is sent ("the lessor") that the lessor intends to supply the vehicle to another in such circumstances that the supply will be a zero-rated supply by virtue of item 12 of Group 14 (letting on hire of motor vehicles to the handicapped) of Schedule 5 to the Value Added Tax Act 1983.
(2) Tax on the vehicle—
- (a) shall not be payable by the registered person, but
- (b) if, within the period of three years beginning with that time, the lessor supplies the vehicle in any circumstances other than those mentioned in subsection (1)(b) above, shall be payable by the lessor and shall become due and payable at the time of the supply.
(3) In this section—
certificate" means a certificate in a form for the time being approved by the Commissioners, and "supply" has the same meaning as in the Value Added Tax Act 1983.
And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.—[Mr. Lawson.]