Finance Act 1989

Chapter III E+W+S+N.I. Miscellaneous

27 Relief from car tax where vehicle leased to the handicapped. E+W+S+N.I.

(1) After section 5 of the M1 Car Tax Act 1983 there shallbe inserted the following section—

“5A Relief where vehicle leased to the handicapped.

(1) This section applies where on the date when, apart from subsection (2)(a)below, tax on a chargeable vehicle would become due from a person registeredunder this Act, there is held by him or on his behalf a certificate of aperson to whom the vehicle is sold (“the lessor”) that the lessor intendsto supply the vehicle to another in such circumstances that the supply willbe a zero-rated supply by virtue of item 12 of Group 14 (letting on hire ofmotor 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 date, the lessorsupplies the vehicle in any circumstances other than those mentioned insubsection (1) above, shall be payable by the lessor and shall become due andpayable at the time of the supply.

(3) In this section—

• “certificate” means a certificate in a form for the timebeing approved by the Commissioners, and

• “supply” has the same meaning as in the Value Added Tax Act1983.”

(2) In section 5 of the Car Tax Act 1983 (liability and payment), insubsection (1), at the end of paragraph (a), there shall be inserted the words “subject to section 5A below”.

(3) The powers conferred by Schedule 1 to that Act to require accounts andrecords to be preserved and produced shall be exercisable also in relation toany certificate which has been held by or on behalf of a registered person forthe purposes of section 5A of that Act.

(4) In paragraph 13 of that Schedule (restriction on registration ofchargeable vehicles), after sub-paragraph (c) there shall be inserted “or

(d) that, by virtue of section 5A of this Act, tax on it has not become dueand payable.”

Annotations:

Annotations are used to give authority for changes and other effects on the legislation you are viewing and to convey editorial information. They appear at the foot of the relevant provision or under the associated heading. Annotations are categorised by annotation type, such as F-notes for textual amendments and I-notes for commencement information (a full list can be found in the Editorial Practice Guide). Each annotation is identified by a sequential reference number. For F-notes, M-notes and X-notes, the number also appears in bold superscript at the relevant location in the text. All annotations contain links to the affecting legislation.

Marginal Citations

M1 1983 c. 53.

28 Reliefs from duties and taxes for persons enjoying certain immunities andprivileges. E+W+S+N.I.

(1) After section 13 of the M2 Customs and Excise Duties(General Reliefs) Act 1979 there shall be inserted the followingsections—

“13A Reliefs from duties and taxes for persons enjoying certain immunities andprivileges.

(1) The Commissioners may by order make provision for conferring in respectof any persons to whom this section applies reliefs, by way of remission orrepayment, from payment by them or others of duties of customs or excise,value added tax or car tax.

(2) An order under this section may make any relief for which it providessubject to such conditions binding the person in respect of whom the reliefis conferred and, if different, the person liable apart from the relief forpayment of the tax or duty (including conditions which are to be compiled withafter the time when, apart from the relief, the duty or tax would becomepayable) as may be imposed by or under the order.

(3) An order under this section may include any of the provisions mentionedin subsection (4) below for cases where—

(a) relief from payment of any duty of customs or excise, value added tax orcar tax chargeable on any goods, or on the suply of any goods or services orthe importation of any goods has been conferred (whether by virtue of an orderunder this section or otherwise) in respect of any person to whom this sectionapplies, and

(b) in the case of goods, provision for forfeiture of the goods.

(4) The provisions referred to in subsection (3) above are—

(a) provision for payment to the Commissioners of the tax or duty by—

(i) the person liable, apart from the relief, for its payment, or

(ii) any person bound by the condition, or

(iii) any person who is or has been in possession of the goods or has received the benefit of the services,

or for two or more of those persons to be jointly and severally liable for such payment, and

(5) An order under this section—

(a) may contain such incidental and supplementary provisions as theCommissioners think necessary or expedient, and

(b) may make different provision for different cases.

(6) In this section and section 13C of this Act—

“duty of customs” includes any agricultural levy within the meaningof section 6 of the European Communities Act 1972 chargeable on goods importedinto the United Kingdom, and

“duty of excise” means any duty of excise chargeableon goods and includes any addition to excise duty by virtue of section 1 ofthe Excise Duties (Surcharges or Rebates) Act 1979.

(7) For the purposes of this section and section 13C of this Act, where inrespect of any person to whom this section applies relief is conferred(whether by virtue of an order under this section or otherwise) in relationto the use of goods by any persons or for any purposes, the relief is to betreated as conferred subject to a condition binding on him that the goods willbe used only by those persons or for those purposes.

(8) Nothing in any order under this section shall be construed as authorisinga person to import any thing in contravention of any prohibition orrestriction for the time being in force with respect to it under or by virtueof any enactment.

13B Persons to whom section 13A applies.

(1) The persons to whom section 13A of this act applies are—

(a) any person who, for the purposes of any provision of the Visiting Forces Act 1952 or the InternationalHeadquarters and Defence Organisations Act 1964 is—

(i) a member of a visiting force or of a civilian component of such a forceor a dependant of such a member, or

(ii) a headquarters, a member of a headquarters or a dependant of such amember,

(b) any person enjoying any privileges or immunities under or by virtueof—

(i) the Diplomatic Privileges Act 1964,

(ii) the Commonwealth Secretariat Act 1966,

(iii) the Consular Relations Act 1968,

(iv) the International Organisations Act 1968, or

(v) the Overseas Development and Co-operation Act 1980,

(c) any person enjoying, under or by virtue of section 2 of the EuropeanCommunities Act 1972, any privileges or immunities similiar to those enjoyedunder or by virtue of the enactments referred to in paragraph (b) above.

(2) The Secretary of State may by order amend subsection (1) above to includeany persons enjoying any privileges or immunities similiar to those enjoyedunder or by virtue of the enactments referred to in paragraph (b) of thatsubsection.

(3) No order shall be made under this section unless a draft of the order hasbeen laid before and approved by resolution of each House of Parliament.

13C Offence where relieved goods used, etc., in breach of condition.

(1) Subsection (2) below applies where—

(a) any relief from payment of any duty of customs or excise, value added taxor car tax chargeable on, or on the supply or importation of, any goods hasbeen conferred (whether by virtue of an order under section 13A of this Actor otherwise) in respect of any person to whom that section applies subjectto any condition as to the persons by whom or the purposes for which the goodsmay be used, and

(b) if the tax or duty has subsequently become payable, it has not been paid.

(2) If any person—

(a) acquires the goods for his own use, where he is not permitted by thecondition to use them, or for use for a purpose that is not permitted by thecondition or uses them for such a purpose, or

(b) acquires the goods for use, or causes or permits them to be used, by aperson not permitted by the condition to use them or by a person for a purposethat is not permitted by the condition or disposes of them to a person notpermitted by the condition to use them,

with intent to evade payment of any tax or duty that has become payableor that, by reason of the disposal, acquisition or use, becomes or will becomepayable, he is guilty of an offence.

(3) For the purposes of this section—

(a) in the case of a condition as to the persons by whom goods may be used,a person is not permitted by the condition to use them unless he is a personreferred to in the condition as permitted to use them, and

(b) in relation to a condition as to the purposes for which goods may be used,a purpose is not permitted by the condition unless it is a purpose referredto in the condition as a permitted purpose,

and in this section “dispose” includes “lend” and “let onhire”, and “acquire” shall be interpreted accordingly.

(4) A person guilty of an offence under this section may be detained and shallbe liable—

(a) on summary conviction, to a penalty of the statutory maximum or of threetimes the value of the goods (whichever is the greater), or to imprisonmentfor a term not exceeding six months, or to both, or

(b) on conviction on indictment, to a penalty of any amount, or toimprisonment for a term not exceeding seven years, or to both.”

(2) Section 13C of the M3 Customs and Excise Duties (GeneralReliefs) Act 1979 inserted by subsection (1) above shall have effect whererelief is conferred on or after the day on which this Act is passed.

(3) In section 17 of the Customs and Excise Duties (General Reliefs) Act 1979,in subsection (3), for “or 13” there shall be substituted “13 or13A” and, in subsection (4), for “or 13(1)” there shall be substituted “13(1) or 13A”.

Annotations:

Annotations are used to give authority for changes and other effects on the legislation you are viewing and to convey editorial information. They appear at the foot of the relevant provision or under the associated heading. Annotations are categorised by annotation type, such as F-notes for textual amendments and I-notes for commencement information (a full list can be found in the Editorial Practice Guide). Each annotation is identified by a sequential reference number. For F-notes, M-notes and X-notes, the number also appears in bold superscript at the relevant location in the text. All annotations contain links to the affecting legislation.

Marginal Citations

M2 1979 c. 3.

M3 1979 c. 3.

[F1 29 Recovery of overpaid excise duty and car tax. E+W+S+N.I.

(1) This section applies to proceedings for restitution of an amount paid tothe Commissioners of Customs and Excise by way of excise duty or car tax.

(2) Proceedings to which this section applies shall not be dismissed by reasononly of the fact that the amount was paid by reason of a mistake of law.

(3) In any proceedings to which this section applies it shall be a defencethat repayment of an amount would unjustly enrich the claimant.

(4) This section shall have effect in relation to proceedings commenced on or after the day on which this Act is passed.]

Annotations:

Annotations are used to give authority for changes and other effects on the legislation you are viewing and to convey editorial information. They appear at the foot of the relevant provision or under the associated heading. Annotations are categorised by annotation type, such as F-notes for textual amendments and I-notes for commencement information (a full list can be found in the Editorial Practice Guide). Each annotation is identified by a sequential reference number. For F-notes, M-notes and X-notes, the number also appears in bold superscript at the relevant location in the text. All annotations contain links to the affecting legislation.

Amendments (Textual)

F1 S. 29 ceases to have effect (1.12.1995 with effect as mentioned in s. 20(5) of the amending Act) by 1995 c. 4, s. 20(3); S.I. 1995/2892, art. 2