RCB/19/20 VAT—Repeal of the VAT (Treatment of Transactions) Order 1992
Revenue & Customs Brief, Issue 19. 30 November 2020
Purpose of this brief
This brief announces the Government's intention to repeal, before autumn 2021, the VAT (Treatment of Transactions) Order 1992.
Government departments and NHS bodies that supply cars to their employees under salary sacrifice arrangements.
The repeal of the VAT (Treatment of Transactions) Order 1992 will ensure government departments and NHS bodies cannot exploit the legislation to give themselves a VAT recovery advantage over other taxpayers.
The legislation was originally introduced to avoid double taxation, but subsequent changes to UK law and policy have