Finance (No. 2) Act 2008
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Amendment of section 135B (repayment of amounts in respect of vehicle registration tax in certain cases) of Finance Act 1992. |
65.— Section 135B of the Finance Act 1992 is amended by inserting the following after subsection (5): | |
“(6) (a) Subject to sections 105B, 105C and 105D of the Finance Act 2001 where an authorised person pays an amount of vehicle registration tax in respect of a vehicle which was not due, any repayment of the overpaid amount and interest (if any) payable under section 105D shall, subject to the provisions of this subsection, be made to the authorised person on condition that the authorised person pays the amount of the repayment and interest to the person who was the registered owner of the vehicle at the time of the registration of the vehicle. | ||
(b) (i) Where the registered owner of the vehicle at the date of the repayment to the authorised person is the first registered owner the amount of the repayment shall be the amount of the vehicle registration tax overpaid. | ||
(ii) Where the first registered owner has disposed of the vehicle prior to the date of the repayment the amount of the repayment shall be calculated as follows: | ||
(OP + V) — (S × R) | ||
where— | ||
OP is the original purchase price, | ||
V is the amount of vehicle registration tax paid, | ||
S is the price, if any, received by the first registered owner at the time of disposal, and | ||
R is the rate of vehicle registration tax charged at the time of registration on purchase. | ||
(c) For the purpose of paragraph (b) the first registered owner shall as a condition of the repayment present documentary proof to the Commissioners of the disposal of the vehicle and the price (if any) received by that owner in respect of that disposal. | ||
(d) An authorised person shall be entitled to deduct an amount not more than 10 per cent of the repayment from the payment to the first registered owner of the vehicle to cover the costs of the authorised person in processing the repayment claim. | ||
(e) Where an authorised person fails to make a payment within 30 days to the first registered owner in accordance with paragraph (a) following payment by the Commissioners of such repayment, any amount unpaid, shall for the purpose of this Act, be treated as if it were vehicle registration tax due by the authorised person on the day following the expiry of the 30 day period.”. |