2008 No. 2676

Value Added Tax

The Value Added Tax (Reduced Rate) (Supplies of Domestic Fuel or Power) Order 2008

Made

Laid before the House of Commons

Coming into force

The Treasury make the following Order in exercise of the powers conferred by sections 29A and 96(9) of the Value Added Tax Act 19941.

Citation and Commencement1

This Order may be cited as the Value Added Tax (Reduced Rate) (Supplies of Domestic Fuel or Power) Order 2008 and comes into force on 1st November 2008.

Amendment of Group 1 of Schedule 7A to the Value Added Tax Act 19942

In Schedule 7A to the Value Added Tax Act 1994 (reduced rate: supplies of domestic fuel or power)2, in paragraph 1(3) of the Notes to Group 1, insert at the end—

, unless the oil is—

a

kerosene in respect of which a relevant declaration has been made under section 13AC(3) of that Act (use of rebated kerosene for private pleasure-flying)3; or

b

oil in respect of which a relevant declaration has been made under section 14E(3) of that Act (use of rebated heavy oil for private pleasure craft)4

Steve McCabeDave WattsTwo of the Lords Commissioners of Her Majesty’s Treasury
EXPLANATORY NOTE

(This note is not part of the Order)

This Order, which comes into force on 1st November 2008, amends Group 1 of Schedule 7A to the Value Added Tax Act 1994.

Item 1(d) of Group 1 applies the reduced rate of VAT to qualifying supplies of fuel oil, gas oil and kerosene. By virtue of Note 1(3) to Group 1, item 1(d) only applies to supplies of fuel oil, gas oil and kerosene which attract relief from, or rebate of, excise duty under the Hydrocarbon Oil Duties Act 1979 (c. 5).

From 1st November 2008 kerosene used as fuel for private pleasure-flying and fuel oil, gas oil and kerosene used as fuel for propelling private pleasure craft will no longer attract relief from, or rebate of, excise duty.

Article 2 amends Group 1 to maintain the reduced rate of VAT in relation to supplies of kerosene used as fuel for private pleasure-flying and supplies of fuel oil, gas oil and kerosene used as fuel for propelling private pleasure craft, notwithstanding that those supplies will cease to attract relief from, or rebate of, excise duty.

A full and final Impact Assessment has not been produced for this instrument as no impact on the private or voluntary sectors is foreseen.