§ Mr. Dykesasked the Chancellor of the Exchequer whether the scheme of value added tax scale charges for fuel used by businesses for private motoring will apply to vehicles other than cars.
§ Mr. BrookeNo. Although the legislation in the Finance Act 1986 is widely drawn, the derogation for which application was made under article 27 of the sixth VAT directive was confined to cars and there will therefore be no change in the VAT treatment of road fuel used by businesses for private journeys in vehicles other than cars. However, Customs will be keeping the operation of the scheme under review and any changes found to be necessary will be announced in due course.