Finance Act 2015

Amendment of section 87 of Principal Act (margin scheme - taxable dealers)

57. The Principal Act is amended in section 87—

(a) in subsection (1) by substituting the following definition for the definition of “means of transport”—

“ ‘means of transport’ means—

(a) motorised land vehicles with an engine cylinder capacity exceeding 48 cubic centimetres or a power exceeding 7.2 kilowatts, other than agricultural machinery, and

(b) vessels exceeding 7.5 metres in length and aircraft with a take-off weight exceeding 1,550 kilogrammes, other than vessels and aircraft of the kind referred to in paragraph 4(2) of Schedule 2,

which are intended for the transport of persons or goods, other than new means of transport supplied where section 24(1)(b) applies in relation to that supply;”,


(b) by inserting the following subsection after subsection (2) —

“(2A) A taxable dealer shall not apply the margin scheme to a supply of a new means of transport where section 24(1)(b) applies in relation to that supply.”.