(1) Section 134 of the Finance Act 1992 is amended -

(a) in subsection (7) by inserting "For the avoidance of doubt, the business of hiring vehicles does not include and shall be deemed never to have included the hiring of vehicles that are a supply of the kind specified in paragraph (i)(e) of the First Schedule of the Value-Added Tax Act 1972, in respect of vehicles supplied pursuant to an agreement in accordance with section 3(1)(b) of that Act." after "limitations.",

(b) in subsection (11) by substituting the following for paragraph (b) (other than for the proviso to that paragraph):

"(b) In paragraph (a) ' short-term self-drive con tracts ' means contracts under which vehicles are hired to persons for the purpose of being driven by them for any term or part of a term which, when added to the term of any such hiring of the same vehicle or any other vehicle to the same person does not exceed 5 weeks in any period of 6 months from the date of the commencement of the last hiring.",

and

(c) by inserting the following after subsection (14):

"(15)

(a) The repayment amount referred to in subsection (11)(a) shall be reduced by 33 per cent for vehicles that are withdrawn from short-term car-hire during the period 1 October 2009 to 30 September 2010.