Legislation – Finance Act 2022

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PART 5Other taxes

Value added tax

69Interim operation of margin schemes for used cars etc: Northern Ireland

(1)

Subsection (2) applies where a person supplies a margin scheme motor vehicle in the following circumstances—

(a)

the vehicle was first registered before IP completion day,

(b)

the person took possession of it in Great Britain or the Isle of Man,

(c)

it was then removed to Northern Ireland, and

(d)

in respect of the supply, the person is prevented from exercising a margin scheme option by, and only by, a Northern Ireland exclusion.

(2)

The person may exercise the margin scheme option in respect of the supply (despite the Northern Ireland exclusion), subject to any regulations under subsection (3) and any direction given under subsection (4) (and not withdrawn).

(3)

The Treasury may by regulations made by statutory instrument provide that a margin scheme option may not be exercised in reliance on subsection (2) where the vehicle was removed to Northern Ireland after a date specified in the regulations (the “end date”).

(4)

The Commissioners for Her Majesty’s Revenue and Customs may, in a notice published by them, direct that a margin scheme option may not be exercised in reliance on subsection (2) after a date specified in the notice.

(5)

Regulations under subsection (3) and notices under subsection (4) may specify different dates in relation to different cases.

(6)

The date specified in relation to a case in a notice under subsection (4) must fall after the end date specified in relation to the case.

(7)

A statutory instrument containing regulations under subsection (3) is subject to annulment in pursuance of a resolution of the House of Commons.

(8)

In this section—

“the 1992 Order” means the Value Added Tax (Cars) Order 1992 (S.I. 1992/3122);

“the 1995 Order” means the Value Added Tax (Special Provisions) Order 1995 (S.I. 1995/1268);

“margin scheme motor vehicle” means a mechanically propelled vehicle that is—

(a)

a used motor car, or

(b)

second-hand goods;

“margin scheme option” means the option under article 8(1) of the 1992 Order (relief for used motor cars) or article 12(1) of the 1995 Order (relief for second-hand goods etc);

“motor car” has the meaning given in the 1992 Order;

“Northern Ireland exclusion” means article 8(3)(e) of the 1992 Order (used motor car removed to Northern Ireland) or article 12(3)(aa) of the 1995 Order (second-hand goods etc removed to Northern Ireland);

“registered” means registered under—

(a)

VERA 1994, or

(b)

the Licensing and Registration of Vehicles Act 1985 of the Isle of Man;

“second-hand goods” has the meaning given in the 1995 Order;

“used”, in relation to a motor car, has the same meaning as in the 1992 Order.

(9)

Subsections (1) to (8) come into force on such day as the Treasury may by regulations made by statutory instrument appoint.

(10)

Regulations under subsection (9)—

(a)

may specify different days in relation to different cases, and

(b)

may provide for subsections (1), (2) and (8) to be treated as having come into force on IP completion day.

(11)

The Treasury may by regulations made by statutory instrument make transitional, transitory or saving provision in connection with the coming into force of subsections (1) to (8), including provision making different provision in relation to different cases.