BAILII [Home] [Databases] [World Law] [Multidatabase Search] [Help] [Feedback]

United Kingdom Statutory Instruments
You are here: BAILII >> Databases >> United Kingdom Statutory Instruments >> The Value Added Tax (Buildings and Land) Order 2002
URL: http://www.bailii.org/uk/legis/num_reg/2002/20021102.html

[New search] [Help]


2002 No. 1102

VALUE ADDED TAX

The Value Added Tax (Buildings and Land) Order 2002

Approved by the House of Commons

  Made 17th April 2002 
  Laid before the House of Commons 17th April 2002 
  Coming into force 1st June 2002 

The Treasury, in exercise of the powers conferred on them by section 51(2) of the Value Added Tax Act 1994[1] and of all other powers enabling them in that behalf, hereby make the following Order:

     1. This Order may be cited as the Value Added Tax (Buildings and Land) Order 2002 and comes into force on 1st June 2002.

     2. For paragraph (b) of paragraph 1(6) of Schedule 10 to the Value Added Tax Act 1994 substitute - 


Tony McNulty

Anne McGuire
Two of the Lord's Commissioners of Her Majesty's Treasury

17th April 2002


EXPLANATORY NOTE

(This note is not part of the Order)


This Order amends Schedule 10 to the Value Added Tax Act 1994.

Group 5 of Schedule 8 to that Act applies the zero rate of VAT to supplies relating to certain buildings which are intended for use solely for a relevant charitable or a relevant residential purpose. If the use of a building originally zero-rated under these provisions is changed to use for other purposes within 10 years of its completion, a standard-rated supply is deemed to have been made both to and by the charity or other person using the building. This self-supply is created by paragraph 1(5) of Schedule 10. The value of the self-supply is calculated in accordance with paragraph 1(6) of Schedule 10.

This Order amends the method of calculating the value of the supply given in paragraph 1(6) of Schedule 10. Whereas at present the calculation method gives a value which means that all of the original VAT saved by zero-rating has to be accounted for, the new formula allows a reduction in the value (and the corresponding VAT) by one tenth for each complete year of relevant charitable or relevant residential use before the change of use occurs.

Notes:

 [1] 1994 c. 23.back


ISBN 0 11 042247 3


  Prepared 29 May 2002

BAILII: Copyright Policy | Disclaimers | Privacy Policy | Feedback | Donate to BAILII
URL: http://www.bailii.org/uk/legis/num_reg/2002/20021102.html