Value Added Tax Act 1994 section 95

Meaning of "new means of transport"

Section 95 defines what counts as a "means of transport" and when such a vehicle, vessel or aircraft is considered "new" for VAT purposes.

• A "means of transport" covers ships over 7.5 metres long, aircraft with a take-off weight over 1,550 kilograms, and motorised land vehicles with engine capacity over 48 cubic centimetres (or electrically propelled using more than 7.2 kilowatts)
• The vehicle, vessel or aircraft must be intended for transporting persons or goods
• A means of transport is "new" if it meets specific criteria relating to how recently it was supplied or how little it has been used since first entering service
• The Treasury has the power to amend by order both the descriptions of what qualifies as a means of transport and the criteria for when one is considered new