Revenue and Customs Brief 19 (2020): 'VAT - repeal of the VAT (Treatment of Transactions) Order 1992' announces the government's intention to repeal the VAT (Treatment of Transactions) Order 1992 before autumn 2021. 

The Court of Appeal case of HMRC v Northumbria Healthcare NHS Foundation Trust [2020] EWCA Civ 874 resulted in NHS bodies and government departments being able to recover VAT in respect of employees' private vehicles subject to Salary sacrifice arrangements, contrary to general wider VAT principles. 

The VAT (Treatment of Transactions) Order 1992 (the Order) was introduced to avoid double taxation but is now redundant. 

To ensure government departments and NHS bodies do not obtain a VAT recovery advantage over other taxpayers, the Order will be repealed before autumn 2021. 

Links to our guides

Car or van for VAT?
What is a car for VAT? What is a van for VAT? What VAT can be recovered on a car that is bought? Leased? What about fuel? Or mileage reimbursements?

Salary sacrifice & optional remuneration schemes
What is a salary sacrifice or optional remuneration arrangement? How is it taxed?

External Link 

Revenue and Customs Brief 19 (2020): 'VAT - repeal of the VAT (Treatment of Transactions) Order 1992'

 

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