Tractors and Trailers Free from P T •
Page 32
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Purchase Tax to be Paid on Articulated Outfits : Works Trucks Exempt.
OAD-HAULAGE tractors and. separate trailers are not subject to " purchase tax, the Customs and Excise Department told -" The Commercial Motor" after the .Finance Bill had been published last week. Tractors forming part of articulated vehicles, and their semitrailers, are, however, liable to purchase tax. The Third Schedule to the -Finance Bill is ambiguous, but apparently the Customs and Excise Department has decided to-take a view favourable to operators.
Section (a) (ii) of the Schedule levies purchase tax on road vehicles constructed or adapted for use for the carriage or haulage of goods . or burden of. any description not forming part of the vehicle or necessary for its propulsion or equipment, being either mechanically propelled • vehicles or vehicles designed for use as components of a composite vehicle which is mechanically propelled."
. A separate trailer is not regarded as a component of a mechanically propelled composite vehicle. • A composite vehicle is an articulated outfit.
Industrial and Works trucks, designed
primarily for use in factories, docks, yards, railways stations or warehouses, are now added to the list of the exemptions from purchase tax.
Originally, this list specified "farm tractors." In the Finance Bill, this simple ph r a se is translated into " tractors and locomotives, except tractors or locomotives designed for use as components of a composite vehicle."
This definition would appear to make the Fergnson agricultural. tractor, and the two-wheeled trailer designed for use with it, liable to purchase tax, because part of the load is super imposed on the tractor. It is understood, however that the maker has been informed that, for purposes of purchase tax, the Ferguson and trailer would not be regarded as an articulated vehicle.
It is understood that where a vehicle is delivered in 'primer, tax will be calculated on its value in that state. The cost of finishingiby some concern other than the maker or distributor Will be ignored.