Article by Ian Fleming, Group VAT specialist, Armstrong Watson & Co, Carlisle. This article appeared in the August 2006 issue of Tax Adviser.
In the first article on this subject (Formula one tractors, Tax Adviser, July 2005 p16), the author discussed how difficult it was to decide whether or not a Fastrac four-wheel drive tractor fell within the definition of an agricultural tractor by reference to Hydrocarbon Oil Duties Act 1979 Sch 1 para 2. In particular, is a tractor, irrespective of whether it is a Fastrac or a conventional agricultural tractor, entitled to use gas oil (rebated heavy oil), otherwise known as red diesel, when moving plant and equipment for use on a agricultural land drainage contract, from the company's premises to the farmer's field?
020 7235 9381
August 2006 by