Part 7Miscellaneous

Value added tax and insurance premium tax

99VAT: non-business use etc of business goods

1

Schedule 4 to VATA 1994 (matters to be treated as supply of goods or services) is amended as follows.

2

In paragraph 5 (non-business use etc of business goods), omit sub-paragraph (4A) (exception to rule in case of interests in land and buildings etc that non-business use of business assets treated as supply of services).

3

In paragraph 9 (application of paragraphs 5 to 8 where land forms part of assets of business), insert at the end—

4

In this paragraph “grant” includes surrender.

4

Paragraph 7 of Schedule 6 to VATA 1994 (valuation of supply of services otherwise than for consideration by virtue of paragraph 5(4) of Schedule 4 etc) is amended as follows.

5

The existing provision becomes sub-paragraph (1) and after that sub-paragraph insert—

2

Regulations may, in relation to a supply of services by virtue of paragraph 5(4) of Schedule 4 (but otherwise than for a consideration), make provision for determining how the full cost to the taxable person of providing the services is to be calculated.

3

The regulations may, in particular, make provision for the calculation to be made by reference to any prescribed period.

4

The regulations may make—

a

different provision for different circumstances;

b

such incidental, supplementary, consequential or transitional provision as the Commissioners think fit.

6

The amendment made by subsection (2) comes into force on 1st September 2007.

7

The amendment made by subsection (3) has effect in relation to surrenders on or after 21st March 2007.