Statutory Instruments
2004 No. 779
VALUE ADDED TAX
The Value Added Tax (Special Provisions) (Amendment) Order 2004
Made
17th March 2004
Laid before the House of Commons
17th March 2004
Coming into force
18th March 2004
The Treasury, in exercise of their powers conferred upon them by section 5(3) of the Value Added Tax Act 1994( 1 ) hereby make the following Order:
1. This Order may be cited as the Value Added Tax (Special Provisions) (Amendment) Order 2004 and shall come into force on 18th March 2004.
2. The Value Added Tax (Special Provisions) Order 1995( 2 ) shall be amended in accordance with the following articles.
3. In article 5(2) for the words “the transferee has made an election in relation to the land concerned which has effect on the relevant date and has given any written notification of that election required by paragraph 3(6) of Schedule 10 to the Act, no later than the relevant date”( 3 ) substitute “the conditions contained in paragraph (2A) below are satisfied”.
4. After article 5(2) insert—
“ (2A) The conditions referred to in paragraph (2) above are that the transferee has, no later than the relevant date—
(a) made an election in relation to the land which has effect on the relevant date and has given any written notification of the election required by paragraph 3(6) of Schedule 10 to the Act; and
(b) notified the transferor that paragraph (2B) below does not apply to him.
(2B) This paragraph applies to a transferee where—
(a) the supply of the asset that is to be transferred to him would become, in relation to him, a capital item as described in regulation 113 of the Value Added Tax Regulations 1995 ( 4 ) if the supply of that asset to him—
(i) were to be treated as neither a supply of goods nor a supply of services; or
(ii) were not so treated; and
(b) his supplies of that asset will, or would fall, to be exempt supplies by virtue of paragraph 2(3AA) of Schedule 10 to the Act. ” ( 5 ).
John Heppell
Nick Ainger
Two of the Lords Commissioners of Her Majesty’s Treasury
17 March 2004
S.I. 1995/1268 ; article 5 was amended by S.I. 1998/760 ; there are other amending instruments but none are relevant.
Article 2(1) of S.I. 1995/1268 provides that references to “the Act” are references to the Value Added Tax Act 1994.
Paragraph 2(3AA) was inserted by section 37(2) of the Finance Act 1997 (c. 16) and amended by S.I. 1999/593 and 2004/778 ; regulation 2(1) of S.I. 1995/2518 provides that references to “the Act” are references to the Value Added Tax Act 1994.