SCHEDULES

C1SCHEDULE 18Serial tax avoidance

Annotations:
Modifications etc. (not altering text)
C1

Sch. 18 modified (17.12.2020 for specified purposes, 31.12.2020 in so far as not already in force) by 1994 c. 23, Sch. 9ZA para. 79 (as inserted by Taxation (Post-transition Period) Act 2020 (c. 26), s. 11(1)(e), Sch. 2 para. 2 (with s. 3(4), Sch. 2 para. 7(7)-(10)); S.I. 2020/1642, reg. 9)

PART 2Entry into the regime and basic concepts

Meaning of “non-deductible tax”

6

1

In this Schedule “non-deductible tax”, in relation to a taxable person, means—

a

input tax for which the person is not entitled to credit under section 25 of VATA 1994, and

b

any VAT incurred by the person which is not input tax and in respect of which the person is not entitled to a refund from the Commissioners by virtue of any provision of VATA 1994.

2

For the purposes of sub-paragraph (1)(b), the VAT “incurred” by a taxable person is—

a

VAT on the supply to the person of any goods or services,

F1b

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . and

c

VAT paid or payable by the person on the importation of any goods F2....