PART II

Customs and Excise

Chapter I

Registration and Taxation of Vehicles

52. —In this Chapter “the Act of 1992” means the Finance Act, 1992 .

53. —Section 130 of the Act of 1992 is hereby amended by the substitution of “11 passengers” for “16 persons (inclusive of the driver)” in the definition of “bus”.

54. —Section 134 of the Act of 1992 is hereby amended by the insertion of the following subsections after subsection (10):

“(11) (a) Subject to the provisions of this section, where an authorised person—

(i) has declared a new category A vehicle to the Commissioners for the purposes of registration, or

(ii) has acquired (whether by purchase or under a lease or otherwise) a new category A vehicle prior to the 1st day of July, 1993,

and the vehicle has been used by him subsequently solely for hiring to others under short-term self-drive contracts, an amount, calculated pursuant to subsection (12), of the vehicle registration tax, or, as the case may be, of the motor vehicle excise duty under the Order of 1979, paid in respect of the vehicle shall, subject to any prescribed conditions, restrictions or limitations, be repaid to the person when he ceases to use the vehicle solely for hiring to others under such contracts.

(b) In paragraph (a) ‘short-term self-drive contracts’ means contracts under which vehicles are hired to persons for the purpose of being driven by them and under which the same vehicle is not hired to the same person for a period exceeding, or for periods exceeding in total, 5 weeks in any period of 12 months.

(12) (a) The amount (if any) of the repayment to a person under subsection (11) shall be—

(i) in the case of a vehicle in respect of which vehicle registration tax has been paid, such amount as bears to the amount of the tax paid (less the amount of any repayment paid or due to the person under subsection (7)) the same proportion as the appropriate amount bears to the open market selling price of the vehicle at the time of its registration,

and

(ii) in the case of a vehicle in respect of which motor vehicle excise duty under the Order of 1979 has been paid, such amount as bears to the amount of the duty paid the same proportion as the appropriate amount bears to the open market selling price of the vehicle, as determined by the Commissioners, at the time of the charging of the duty.

(b) In paragraph (a) ‘the appropriate amount’, in relation to a vehicle, means the amount (if any), determined by the Commissioners, by which the open market selling price of the vehicle has fallen between the time of its registration or, as the case may be, the time of the charging of the excise duty under the Order of 1979 and the time of the cessation, in relation to the vehicle, referred to in subsection (11) (a).

(13) (a) A repayment to a person under subsection (11) shall not be made unless any vehicle registration tax or value-added tax payable by the person by the date of repayment has been paid.

(b) No repayment shall be made in respect of a vehicle on which motor vehicle excise duty under the Order of 1979 has been paid prior to the 1st day of January, 1991.

(14) A repayment under subsection (11) shall be made only in respect of a vehicle as respects which the cessation referred to in subsection (11) (a) occurs on or after the 1st day of September, 1993.

(15) Where an authorised person disposes of a category A vehicle, or a motor-cycle, in respect of which vehicle registration tax has been paid and the vehicle or motor-cycle, as the case may be, has been kept since its registration solely for the purpose of demonstration, an amount, determined by the formula specified in subsection (8), of the vehicle registration tax shall, subject to any prescribed conditions, restrictions or limitations, be repaid to the person if—

(a) the vehicle or motor-cycle, as the case may be, does not qualify for a repayment under subsection (7), and

(b) any vehicle registration tax or value-added tax payable by the person by the date of repayment has been paid.”.

55. —Section 136 of the Act of 1992 is hereby amended by the substitution of the following subsection for subsection (6):

“(6) For the purposes of subsection (5) the Commissioners may, subject to compliance with such conditions for securing payment as they may think fit to impose, permit payment of vehicle registration tax to be deferred—

(a) to a day not later than the 15th day of the month following that in which the tax is charged,

or

(b) in the case of a new category A vehicle purchased by an authorised person carrying on the business of hiring vehicles to others under short-term self-drive contracts (within the meaning of section 134 (11) (b)) and intended for use solely for the purposes of such hiring in the course of that business—

(i) if the tax is charged on or after the 1st day of December in any year and prior to the 1st day of September in the following year, to a day not later than the 15th day of September in the said following year, or

(ii) if the tax is charged on or after the 1st day of September in any year and prior to the 1st day of December in that year, to a day not later than the 15th day of December in that year,

or the day of the cessation, in relation to the vehicle, referred to in section 134 (11) (a), whichever is the earlier.”.

56. —Section 141 of the Act of 1992 is hereby amended—

(a) in subsection (2), by the substitution of the following paragraph for paragraph (s) (inserted by the Finance (No. 2) Act, 1992 ):

“(s) make provision (including the prescription of conditions, restrictions and limitations) in relation to subsections (7), (11) and (15) of section 134.”,

and

(b) by the substitution of the following subsection for subsection (3):

“(3) The Minister may make such regulations as he considers necessary or expedient for the purpose of giving full effect to sections 134 (other than subsections (6), (7), (11) and (15)) and 135.”.