Value Added Tax (Special Provisions) Order 1995
| Jurisdiction | UK Non-devolved |
| Citation | SI 1995/1268 |
| Year | 1995 |
1995 No. 1268
VALUE ADDED TAX
The Value Added Tax (Special Provisions) Order 1995
Made 10th May 1995
Laid before the House of Commons 10th May 1995
Coming into force 1st June 1995
The Treasury, in exercise of the powers conferred on them by sections 5(3) and (5), 11(4), 43(2) and 50A of the Value Added Tax Act 19941and of all other powers enabling them in that behalf, hereby make the following Order:
Citation and commencement
1. This Order may be cited as the Value Added Tax (Special provisions) Order 1995, and shall come into force on 1st June 1995.
Interpretation
2. In this Order—
“finance agreement” means an agreement for the sale of goods whereby the property in those goods is not to be transferred until the whole of the price has been paid and the seller retains the right to repossess the goods;
“insurer” means a person permitted, in accordance with section 2 of the Insurance Companies Act 19822, to effect and carry out contracts of insurance against risks of loss of or damage to goods;
“marine mortgage” means a mortgage which is registered in accordance with the Merchant Shipping (Registration, etc.) Act 19933and by virtue of which a boat (but not any share thereof) is made a security for a loan;
“aircraft mortgage” means a mortgage which is registered in accordance with the Mortgaging of Aircraft Order 19724and by virtue of which an aircraft is made security for a loan;
“the Act” means the Value Added Tax Act 1994;
“the Manx Act” means the Value Added Tax and other Taxes Act 19735;
“works of art” means the following goods—
pictures, collages and similar decorative plaques, paintings and drawings, executed entirely by hand by the artist, other than plans and drawings for architectural, engineering, industrial, commercial, topographical or similar purposes, hand- decorated manufactured articles, theatrical scenery, studio back cloths or the like of painted canvas,
original engravings, prints and lithographs, being impressions produced in limited numbers directly in black and white or in colour of one or of several plates executed entirely by hand by the artist irrespective of the process or of the material employed by him, but not including any mechanical or photomechanical process,
original sculptures and statuary, in any material, provided that they are executed entirely by the artist; sculpture casts the production of which is limited to eight copies (or, in relation to statuary casts produced before 1st January 1989, such greater number of copies as the Commissioners of Customs and Excise may in any particular case allow) and supervised by the artist or his successors in title;
tapestries and wall textiles made by hand from original designs provided by artists, provided that there are not more than eight copies of each,
individual pieces of ceramics executed entirely by the artist and signed by him,
enamels on copper, executed entirely by hand, limited to eight numbered copies bearing the signature of the artist or the studio, excluding articles of jewellery and goldsmiths' and silversmiths' wares,
photographs taken by the artist, printed by him or under his supervision, signed and numbered and limited to 30 copies, all sizes and mounts included;
“antiques” means objects other than works of art or collectors' items, which are more than 100 years old;
“collectors' items” means the following goods—
postage or revenue stamps, postmarks, first-day covers, pre-stamped stationery and the like, franked, or if unfranked not being of legal tender and not being for use as legal tender,
collections and collectors' pieces of zoological, botanical, mineralogical, anatomical, historical, archaeological, palaeontological, ethnographic or numismatic interest;
“motor car” means any motor vehicle of a kind normally used on public roads which has three or more wheels and either—
(a) is constructed or adapted solely or mainly for the carriage of passengers; or
(b) has to the rear of the driver’s seat roofed accommodation which is fitted with side windows or which is constructed or adapted for the fitting of side windows;
but does not include—
(i) vehicles capable of acommodating only one person or suitable for carrying twelve or more persons;
(ii) vehicles of not less than three tonnes unladen weight;
(iii) caravans, ambulances and prison vans;
(iv) vehicles of a type approved by the Assistant Commissioner of Police of the Metropolis as conforming to the condition of fitness for the time being laid down by him for the purposes of the London Cab Order 19346
(v) vehicles constructed for a special purpose other than the carriage of persons and having no other accommodation for carrying persons than such as is incidental to that purpose;
“second-hand goods” means tangible movable property that is suitable for further use as it is or after repair, other than motor cars, works of art, collectors' items or antiques and other than precious metals and precious stones;
“printed matter” includes printed stationery but does not include anything produced by typing, duplicating or photo-copying;
“auctioneer” means a person who sells or offers for sale goods at any public sale where persons become purchasers by competition, being the highest bidders.
Revocations
3.—(1) The Value Added Tax (Horses and Ponies) Order 19837is hereby revoked.
(2) The Value Added Tax (Special Provisions) Order 19928is hereby revoked.
(3) The Value Added Tax (Special Provisions) (Amendment) Order 19959is hereby revoked.
Treatment of transactions
4.—(1) Each of the following descriptions of transactions shall be treated as neither a supply of goods nor a supply of services—
(a)
(a) the disposal of any of the goods described in paragraph (3) below by a person who repossessed them under the terms of a finance agreement;
(b)
(b) the disposal of any of the goods described in paragraph (3) below by an insurer who has taken possession of them in settlement of a claim under a policy of insurance;
(c)
(c) the disposal of a boat by a mortgagee after he has taken possession thereof under the terms of a marine mortgage;
(d)
(d) the disposal of an aircraft by a mortgagee after he has taken possession thereof under the terms of an aircraft mortgage;
if, in each case, the goods so disposed of are in the same condition at the time of disposal as they were when they were repossessed or taken into possession, as the case may be, and if a supply of them in the United Kingdom by the person from whom in each case they were obtained would not have been chargeable with VAT, or would have been chargeable with VAT on less than the full value of such supply.
(2) Paragraph (1) of this article shall not apply to reimported goods which were previously exported from the United Kingdom or the Isle of Man free of VAT chargeable under the Act or VAT chargeable under Part I of the Manx Act by reason of the zero-rating provisions of either regulations made under either Act, or to imported goods which have not borne VAT chargeable under either of those Acts in the United Kingdom or the Isle of Man.
(3) The goods referred to in subparagraphs (a) and (b) of paragraph (1) above are as follows:
(a)
(a) works of art, antiques and collectors' items;
(b)
(b) second-hand goods.
5.—(1) Subject to paragraph (2) below, there shall be treated as neither a supply of goods nor a supply of services the following supplies by a person of assets of his business—
(a)
(a) their supply to a person to whom he transfers his business as a going concern where—
(i) the assets are to be used by the transferee in carrying on the same kind of business, whether or not as part of any existing business, as that carried on by the transferor, and
(ii) in a case where the transferor is a taxable person, the transferee is already, or immediately becomes as a result of the transfer, a taxable person or a person defined as such in section 2(2) of the Manx Act;
(b)
(b) their supply to a person to whom he transfers part of his business as a going concern where—
(i) that part is capable of separate operation,
(ii) the assets are to be used by the transferee in carrying on the same kind of business, whether or not as part of any existing business, as that carried on by the transferor in relation to that part, and
(iii) in a case where the transferor is a taxable person, the transferee is already, or immediately becomes as a result of the transfer, a taxable person or a person defined as such in section 2(2) of the Manx Act.
(2) A supply of assets shall not be treated as neither a supply of goods nor a supply of services by virtue of paragraph (1) above to the extent that it consists of—
(a)
(a) a grant which would, but for an election which the transferor has made, fall within item 1 of Group 1 of Schedule 9 to the Act; or
(b)
(b) a grant of a fee simple which falls within paragraph (a) of item 1 of Group 1 of Schedule 9 to the Act,
unless the transferee has made an election in relation to the land concerned which has effect on the relevant date and has given any written notification of the election required by paragraph 3(6) of Schedule 10 to the Act10, no later than the relevant date.
(3) In paragraph (2) of this article—
“election” means an election having effect under paragraph 2 of Schedule 10 to the Act;
“relevant date” means the date upon which the grant would have been treated as having been made or, if there is more than one such date, the earliest of them;
“transferor” and“transferee” include a relevant associate of either respectively as defined in paragraph 3(7) of Schedule 10 to the Act.
(4) There shall be treated as neither a supply of goods nor a supply of services the...
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