(1) An appeal under section 83 is to be made to the tribunal before—
(a) the end of the period of 30 days beginning with—
(i) in a case where P is the appellant, the date of the document notifying the decision to which the appeal relates, or
(ii) in a case where a person other than P is the appellant, the date that person becomes aware of the decision, or
(b) if later, the end of the relevant period (within the meaning of section 83D).
(2) But that is subject to subsections (3) to (5).
(3) In a case where HMRC are required to undertake a review under section 83C—
(a) an appeal may not be made until the conclusion date, and
(b) any appeal is to be made within the period of 30 days beginning with the conclusion date.
(4) In a case where HMRC are requested to undertake a review in accordance with section 83E—
(a) an appeal may not be made—
(i) unless HMRC have notified P, or the other person, as to whether or not a review will be undertaken, and
(ii) if HMRC have notified P, or the other person, that a review will be undertaken, until the conclusion date;
(b) any appeal where paragraph (a)(ii) applies is to be made within the period of 30 days beginning with the conclusion date;
(c) if HMRC have notified P, or the other person, that a review will not be undertaken, an appeal may be made only if the tribunal gives permission to do so.
(5) In a case where section 83F(8) applies, an appeal may be made at any time from the end of the period specified in section 83F(6) to the date 30 days after the conclusion date.
(6) An appeal may be made after the end of the period specified in subsection (1), (3)(b), (4)(b) or (5) if the tribunal gives permission to do so.
(7) In this section “conclusion date” means the date of the document notifying the conclusions of the review.
(1) References in this section to an appeal are references to an appeal under section 83.
(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3) Subject to subsections (3B) and (3C), where the appeal is against a decision with respect to any of the matters mentioned in section 83(1)(b), (n), (p), (q), (ra) , (rb) or (zb), it shall not be entertained unless the amount which HMRC have determined to be payable as VAT has been paid or deposited with them.
(3A) Subject to subsections (3B) and (3C), where the appeal is against an assessment which is a recovery assessment for the purposes of this subsection, or against the amount of such an assessment, it shall not be entertained unless the amount notified by the assessment has been paid or deposited with HMRC.
(3B) In a case where the amount determined to be payable as VAT or the amount notified by the recovery assessment has not been paid or deposited an appeal shall be entertained if—
(a) HMRC are satisfied (on the application of the appellant), or
(b) the tribunal decides (HMRC not being so satisfied and on the application of the appellant),
that the requirement to pay or deposit the amount determined would cause the appellant to suffer hardship.
(3C) Notwithstanding the provisions of sections 11 and 13 of the Tribunals, Courts and Enforcement Act 2007, the decision of the tribunal as to the issue of hardship is final.
(4) Subject to subsection (11) below, where—
(a) there is an appeal against a decision of HMRC with respect to, or to so much of any assessment as concerns, the amount of input tax that may be credited to any person or the proportion of input tax allowable under section 26, and
(b) that appeal relates, in whole or in part, to any determination by HMRC—
(i) as to the purposes for which any goods or services were or were to be used by any person, or
(ii) as to whether or to what extent the matters to which any input tax was attributable were or included matters other than the making of supplies within section 26(2), and
(c) VAT for which, in pursuance of that determination, there is no entitlement to a credit is VAT on the supply ... or importation of something in the nature of a luxury, amusement or entertainment,
the tribunal shall not allow the appeal or, as the case may be, so much of it as relates to that determination unless it considers that the determination is one which it was unreasonable to make or which it would have been unreasonable to make if information brought to the attention of the tribunal that could not have been brought to the attention of HMRC had been available to be taken into account when the determination was made.
(4ZA) Where an appeal is brought—
(a) against such a decision as is mentioned in section 83(1)(fza), or
(b) to the extent that it is based on such a decision, against an assessment,
the tribunal shall not allow the appeal unless it considers that HMRC could not reasonably have been satisfied that there were grounds for the decision.
(4A) Where an appeal is brought against the refusal of an application such as is mentioned in section 43B(1) or (2) on the grounds stated in section 43B(5)(c)—
(a) the tribunal shall not allow the appeal unless it considers that HMRC could not reasonably have been satisfied that there were grounds for refusing the application,
(b) the refusal shall have effect pending the determination of the appeal, and
(c) if the appeal is allowed, the refusal shall be deemed not to have occurred.
(4B) Where an appeal is brought against the giving of a notice under section 43C(1) or (3)—
(a) the notice shall have effect pending the determination of the appeal, and
(b) if the appeal is allowed, the notice shall be deemed never to have had effect.
(4C) Where an appeal is brought against the giving of a notice under section 43C(1), the tribunal shall not allow the appeal unless it considers that HMRC could not reasonably have been satisfied that there were grounds for giving the notice.
(4D) Where—
(a) an appeal is brought against the giving of a notice under section 43C(3), and
(b) the grounds of appeal relate wholly or partly to the date specified in the notice,
the tribunal shall not allow the appeal in respect of the date unless it considers that HMRC could not reasonably have been satisfied that it was appropriate.
(4E) Where an appeal is brought against a requirement imposed under paragraph 4(2)(b) of Schedule 11 that a person give security, the tribunal shall allow the appeal unless HMRC satisfies the tribunal that—
(a) there has been an evasion of, or an attempt to evade, VAT in relation to goods or services supplied to or by that person, or
(b) it is likely, or without the requirement for security it is likely, that VAT in relation to such goods or services will be evaded.
(4F) A reference in subsection (4E) above to evading VAT includes a reference to obtaining a VAT credit that is not due or a VAT credit in excess of what is due.
(5) Where, on an appeal against a decision with respect to any of the matters mentioned in section 83(1)(p) or (rb) —
(a) it is found that the amount specified in the assessment is less than it ought to have been, and
(b) the tribunal gives a direction specifying the correct amount,
the assessment shall have effect as an assessment of the amount specified in the direction, and that amount shall be deemed to have been notified to the appellant.
(6) Without prejudice to section 70, ... nothing in section 83(1)(q) shall be taken to confer on a tribunal any power to vary an amount assessed by way of penalty, interest or surcharge penalty or interest except in so far as it is necessary to reduce it to the amount which is appropriate under sections 59 60 to 70; and in this subsection “penalty” includes an amount assessed by virtue of section 61(3) or (4)(a).
(6A) Without prejudice to section 70, nothing in section 83(1)(zb) shall be taken to confer on a tribunal any power to vary an amount assessed by way of penalty except in so far as it is necessary to reduce it to the amount which is appropriate under paragraph 11 of Schedule 11A.
(6B) Nothing in section 83(1)(zc) shall be taken to confer on a tribunal any power to vary an amount assessed by way of penalty except in so far as it is necessary to reduce it to the amount which is appropriate under regulations made under section 135 of the Finance Act 2002.
(7) Where there is an appeal against a decision to make such a direction as is mentioned in section 83(1)(u), the tribunal shall not allow the appeal unless it considers that HMRC could not reasonably have been satisfied as to the matters in sub-paragraph (2)(a) to (d) of paragraph 2 of Schedule 1 or, as the case may be, that there were grounds for making the direction.
(7A) Where there is an appeal against a decision to make such a direction as is mentioned in section 83(1)(wa), the cases in which the tribunal shall allow the appeal shall include (in addition to the case where the conditions for the making of the direction were not fulfilled) the case where the tribunal are satisfied, in relation to the relevant event by reference to which the direction was given, that—
(a) the change in the treatment of the body corporate, or
(b) the transaction in question,
had as its main purpose or, as the case may be, as each of its main purposes a genuine commercial purpose unconnected with the fulfilment of the condition specified in paragraph 1(3) of Schedule 9A.
(7ZA) Where there is an appeal against such a refusal as is mentioned in section 83(1)(wb)—
(a) the tribunal shall not allow the appeal unless it considers that HMRC could not reasonably have been satisfied that there were grounds for the refusal, and
(b) the refusal shall have effect pending the determination of the appeal.
(7B) Where there is an appeal against a decision to make such a direction as is mentioned in section 83(1)(zza)—
(a) the tribunal shall not allow the appeal unless it considers that HMRC could not reasonably have been satisfied that there were grounds for making the direction;
(b) the direction shall have effect pending the determination of the appeal.
(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(9) No appeal shall lie under this section with respect to the subject-matter of any decision which by virtue of section 16 is a decision to which section 14 or 15A of the Finance Act 1994 (decisions subject to review) applies unless the decision—
(a) relates exclusively to one or both of the following matters, namely whether or not section 30(3) applies in relation to the importation of the goods in question and (if it does not) the rate of tax charged on those goods; and
(b) is not one in respect of which notice has been given to HMRC under section 14 of that Act requiring them to review it and
(c) a review is not being undertaken following a request under section 14A of that Act; and
(d) a review is not being undertaken under section 15 of that Act as a consequence of section 15B(3), 15C(3) or 15E(3) of that Act.
(10) Where an appeal is against an HMRC decision which depended upon a prior decision taken ... in relation to the appellant, the fact that the prior decision is not within section 83 shall not prevent the tribunal from allowing the appeal on the ground that it would have allowed an appeal against the prior decision.
(11) Subsection (4) above shall not apply in relation to any appeal relating to the input tax that may be credited to any person at the end of a prescribed accounting period beginning before 27th July 1993.
(1) Subject to the provisions of this section, where a person gives notice of appeal under section 83 and, before the appeal is determined by a tribunal, HMRC and the appellant come to an agreement (whether in writing or otherwise) under the terms of which the decision under appeal is to be treated—
(a) as upheld without variation, or
(b) as varied in a particular manner, or
(c) as discharged or cancelled,
the like consequences shall ensue for all purposes as would have ensued if, at the time when the agreement was come to, a tribunal had determined the appeal in accordance with the terms of the agreement ....
(2) Subsection (1) above shall not apply where, within 30 days from the date when the agreement was come to, the appellant gives notice in writing to HMRC that he desires to repudiate or resile for the agreement.
(3) Where an agreement is not in writing—
(a) the preceding provisions of this section shall not apply unless the fact that an agreement was come to, and the terms agreed, are confirmed by notice in writing given by HMRC to the appellant or by the appellant to HMRC, and
(b) references in those provisions to the time when the agreement was come to shall be construed as references to the time of the giving of that notice of confirmation.
(4) Where—
(a) a person who has given a notice of appeal notifies HMRC, whether orally or in writing, that he desires not to proceed with the appeal; and
(b) 30 days have elapsed since the giving of the notification without HMRC giving to the appellant notice in writing indicating that they are unwilling that the appeal should be treated as withdrawn,
the preceding provisions of this section shall have effect as if, at the date of the appellant’s notification, the appellant and HMRC had come to an agreement, orally or in writing, as the case may be, that the decision under appeal should be upheld without variation.
(5) References in this section to an agreement being come to with an appellant and the giving of notice or notification to or by an appellant include references to an agreement being come to with, and the giving of notice or notification to or by, a person acting on behalf of the appellant in relation to the appeal.
(1) This section applies where the tribunal has determined an appeal under section 83.
(2) Where on the appeal the tribunal has determined that—
(a) the whole or part of any disputed amount paid or deposited is not due, or
(b) the whole or part of any VAT credit due to the appellant has not been paid,
so much of that amount, or of that credit, as the tribunal determines not to be due or not to have been paid shall be paid or repaid ....
(3) Where on the appeal the tribunal has determined that—
(a) the whole or part of any disputed amount not paid or deposited is due, or
(b) the whole or part of any VAT credit paid was not payable,
so much of that amount, or of that credit, as the tribunal determines to be due or not payable shall be paid or repaid to HMRC ....
(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
85B Payment of tax where there is a further appeal
(1) Where a party makes a further appeal, notwithstanding that the further appeal is pending, value added tax or VAT credits, or a credit of overstated or overpaid value added tax shall be payable or repayable in accordance with the determination of the tribunal or court against which the further appeal is made.
(2) But if the amount payable or repayable is altered by the order or judgment of the tribunal or court on the further appeal—
(a) if too much value added tax has been paid or the whole or part of any VAT credit due to the appellant has not been paid the amount overpaid or not paid shall be refunded with such interest, if any, as the tribunal or court may allow; and
(b) if too little value added tax has been charged or the whole or part of any VAT credit paid was not payable so much of the amount as the tribunal or court determines to be due or not payable shall be due or repayable, as appropriate, at the expiration of a period of thirty days beginning with the date on which HMRC issue to the other party a notice of the total amount payable in accordance with the order or judgment of that tribunal or court.
(3) If, on the application of HMRC, the relevant tribunal or court considers it necessary for the protection of the revenue, subsection (1) shall not apply and the relevant tribunal or court may—
(a) give permission to withhold any payment or repayment; or
(b) require the provision of adequate security before payment or repayment is made.
(4) If, on the application of the original appellant, HMRC are satisfied that financial extremity might be reasonably expected to result if payment or repayment is required or withheld as appropriate, HMRC may do one or more of the things listed in subsection (6).
(5) If on the application of the original appellant, the relevant tribunal or court decides that—
(a) the original appellant has applied to HMRC under subsection (4),
(b) HMRC have decided that application,
(c) financial extremity might be reasonably expected to result from that decision by HMRC,
the relevant tribunal or court may replace, vary or supplement the decision by HMRC by doing one or more of the things listed in subsection (6).
(6) These are the things which HMRC or the relevant tribunal or court may do under subsection (4) or (5)—
(a) decide how much, if any, of the amount under appeal should be paid or repaid as appropriate,
(b) require the provision of adequate security from the original appellant,
(c) stay the requirement to pay or repay under subsection (1).
(7) Subsections (3) to (6) cease to have effect when the further appeal has been determined.
(8) In this section—
“adequate security” means security that is of such amount and given in such manner—
as the tribunal or court may determine (in a case falling within subsection (3) or (5)), or
as HMRC consider adequate to protect the revenue (in a case falling within subsection (4));
“further appeal” means an appeal against—
the tribunal’s determination of an appeal under section 83, or
a decision of the Upper Tribunal or a court that arises (directly or indirectly) from that determination;
“original appellant” means the person who made the appeal to the tribunal under section 83;
“relevant tribunal or court” means the tribunal or court from which permission or leave to appeal is sought.
(1) This section applies where there is a change in the rate of VAT in force under section 2 or 29A or in the descriptions of exempt, zero-rated or reduced-rate supplies ....
(2) Where—
(a) a supply affected by the change would, apart from section 6(4), (5), (6) or (10), be treated under section 6(2) or (3) as made wholly or partly at a time when it would not have been affected by the change; or
(b) a supply not so affected would apart from section 6(4), (5), (6) or (10) be treated under section 6(2) or (3) as made wholly or partly at a time when it would have been so affected,
the rate at which VAT is chargeable on the supply, or any question whether it is zero-rated or exempt or a reduced-rate supply, shall if the person making it so elects be determined without regard to section 6(4), (5), (6) or (10).
(3) Any power to make regulations under this Act with respect to the time when a supply is to be treated as taking place shall include power to provide for this section to apply as if the references in subsection (2) above to section 6(4), (5), (6) or (10) included references to specified provisions of the regulations.
(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5) Regulations under paragraph 2A of Schedule 11 may make provision for the replacement or correction of any VAT invoice which—
(a) relates to a supply in respect of which an election is made under this section, but
(b) was issued before the election was made.
(6) No election may be made under this section in respect of a supply to which paragraph 7 of Schedule 4 or paragraph 2B(4) of Schedule 11 applies.
(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(8) References in this section to a supply being a reduced-rate supply are references to a supply being one on which VAT is charged at the rate in force under section 29A.
(1) Where, after the making of a contract for the supply of goods or services and before the goods or services are supplied, there is a change in the VAT charged on the supply, then, unless the contract otherwise provided, there shall be added to or deducted from the consideration for the supply an amount equal to the change.
(2) Subsection (1) above shall apply in relation to a tenancy or lease as it applies in relation to a contract except that a term of a tenancy or lease shall not be taken to provide that the rule contained in that subsection is not to apply in the case of the tenancy or lease if the term does not specifically to VAT or this section.
(3) References in this section to a change in the VAT charged on a supply include references to a change to or from no VAT being charged on the supply (including a change attributable to the making of an option to tax any land under Part 1 of Schedule 10).
90 Failure of resolution under Provisional Collection of Taxes Act 1968.
(1) Where—
(a) by virtue of a resolution having effect under the Provisional Collection of Taxes Act 1968 VAT has been paid at a rate specified in the resolution on the supply of any goods or services by reference to a value determined under section 19(2) ..., and
(b) by virtue of section 1(6) or (7) or 5(3) of that Act any of that VAT is repayable in consequence of the restoration in relation to that supply ... of a lower rate,
the amount repayable shall be the difference between the VAT paid by reference to that value at the rate specified in the resolution and the VAT that would have been payable by reference to that value at the lower rate.
(2) Where—
(a) by virtue of such a resolution VAT is chargeable at a rate specified in the resolution on the supply of any goods or services by reference to a value determined under section 19(2) ..., but
(b) before the VAT is paid it ceases to be chargeable at that rate in consequence of the restoration in relation to that supply ... of a lower rate,
the VAT chargeable at the lower rate shall be charged by reference to the same value as that by reference to which VAT would have been chargeable at the rate specified in the resolution.
(3) The VAT that may be credited as input tax under section 25 or refunded under section 33, 33A, 33B, 33C or 35 does not include VAT that has been repaid by virtue of any of the provisions mentioned in subsection (1)(b) above or that would be repayable by virtue of any of those provisions if it had been paid.
91 Disclosure of information for statistical purposes.
(1) For the purpose of the compilation or maintenance by the Department of Trade and Industry or the Statistics Board of a central register of businesses, or for the purpose of any statistical survey conducted or to be conducted by that Department or Board, the Commissioners or an authorised officer of the Commissioners may disclose to an authorised officer of that Department or Board particulars of the following descriptions obtained or recorded by them in pursuance of this Act—
(a) numbers allocated by the Commissioners on the registration of persons under this Act and reference numbers for members of a group;
(b) names, trading styles and addresses of persons so registered or of members of groups and status and trade classifications of businesses; and
(c) actual or estimated value of supplies.
(2) Subject to subsection (3) below, no information obtained by virtue of this section by an officer of the Department of Trade and Industry or the Statistics Board may be disclosed except to an officer of a Government department (including a Northern Ireland department) or to a member of the staff of the Scottish Administration for the purpose for which the information was obtained, or for a like purpose.
(3) Subsection (2) above does not prevent the disclosure—
(a) of any information in the form of a summary so framed as not to enable particulars to be identified as particulars relating to a particular person or to the business carried on by a particular person; or
(b) with the consent of any person, of any information enabling particulars to be identified as particulars relating only to him or to a business carried on by him.
(4) If any person who has obtained any information by virtue of this section discloses it in contravention of this section he shall be liable—
(a) on summary conviction to a fine not exceeding the statutory maximum; and
(b) on conviction on indictment to imprisonment for a term not exceeding 2 years or to a fine of any amount or to both.
(5) In this section, references to the Department of Trade and Industry or the Statistics Board include references to any Northern Ireland department or to any part of the Scottish Administration carrying out similar functions.
(1) In this Act “business” includes any trade, profession or vocation.
(2) Without prejudice to the generality of anything else in this Act, the following are deemed to be the carrying on of a business—
(a) the provision by a club, association or organisation (for a subscription or other consideration) of the facilities or advantages available to its members; and
(b) the admission, for a consideration, of persons to any premises.
(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4) Where a person, in the course or furtherance of a trade, profession or vocation, accepts any office, services supplied by him as the holder of that office are treated as supplied in the course or furtherance of the trade, profession or vocation.
(5) Anything done in connection with the termination or intended termination of a business is treated as being done in the course or furtherance of that business.
(6) The disposition of a business , or part of a business, as a going concern, or of the assets or liabilities of the business or part of the business (whether or not in connection with its reorganisation or winding up), is a supply made in the course or furtherance of the business.
95A Meaning of “online marketplace” and “operator” etc
(1) In this Act—
“online marketplace” means a website, or any other means by which information is made available over the internet, which facilitates the sale of goods through the website or other means by persons other than the operator (whether or not the operator also sells goods through the marketplace);
“operator”, in relation to an online marketplace, means the person who controls access to, and the contents of, the online marketplace provided that the person is involved in—
determining any terms or conditions applicable to the sale of goods,
processing, or facilitating the processing, of payment for the goods, and
the ordering or delivery, or facilitating the ordering or delivery, of the goods.
(2) For the purposes of subsection (1), an online marketplace facilitates the sale of goods if it allows a person to—
(a) offer goods for sale, and
(b) enter into a contract for the sale of those goods.
(3) The Treasury may by regulations amend this section so as to alter the meaning of—
“online marketplace”, and
“operator”.
(1) In this Act—
“the 1983 Act” means the Value Added Tax Act 1983;
...
“assignment”, in relation to Scotland, means assignation;
“authorised person” means any person acting under the authority of the Commissioners;
“the Commissioners” means the Commissioners of Customs and Excise;
“copy”, in relation to a document, means anything onto anything onto which information recorded in the document has been copied, by whatever means and whether directly or indirectly.
“document” means anything in which information of any description is recorded; and
“fee simple”—
in relation to Scotland, means the ... interest of the owner;
in relation to Northern Ireland, includes the estate of a person who holds land under a fee farm grant;
“HMRC” means Her Majesty’s Revenue and Customs;
“import duty” means import duty charged in accordance with Part 1 of TCTA 2018;
“invoice” includes any document similar to an invoice;
“input tax” has the meaning given by section 24;
...
“local authority” has the meaning given by subsection (4) below;
“major interest”, in relation to land, means the fee simple or a tenancy for a term certain exceeding 21 years, and in relation to Scotland means the interest of the owner, or the lessee’s interest under a lease for a period of not less than 20 years;
“the Management Act” means the Customs and Excise Management Act 1979;
“money” includes currencies other than sterling;
“output tax” has the meaning given by section 24;
...
...
“postal operator” means a person who provides—
the service of conveying postal packets from one place to another by post, or
any of the incidental services of receiving, collecting, sorting and delivering postal packets;
“postal packet” means a letter, parcel, packet or other article transmissible by post;
“prescribed” means prescribed by regulations:
“prescribed accounting period” has the meaning given by section 25(1);
“quarter” means a period of 3 months ending at the end of March, June, September or December;
“regulations” means regulations made by the Commissioners under this Act;
“relevant business person” has the meaning given by section 7A(4);
“ship” includes hovercraft;
“subordinate legislation” has the same meaning as in the Interpretation Act 1978;
“tax” means VAT;
...
“taxable person” means a person who is a taxable person under section 3;
“taxable supply” has the meaning given by section 4(2);
“the Taxes Act” means the Income and Corporation Taxes Act 1988;
“TCTA 2018” means the Taxation (Cross-border Trade) Act 2018;
“tribunal” has the meaning given by section 82;
“trustee in sequestration” means a trustee (or interim trustee) in a sequestration under the Bankruptcy (Scotland) Act 2016
“VAT” means value added tax charged in accordance with this Act;
“VAT credit” has the meaning given by section 25(3);
“VAT invoice” has the meaning given by section 6(15);
“VAT representative” has the meaning given by section 48;
and any reference to a particular section, Part or Schedule is a reference to that section or Part of, or Schedule to, this Act.
(2) Any reference in this Act to being registered shall be construed in accordance with section 3(3).
(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4) In this Act “local authority” means the council of a county, county borough, district, London borough, parish or group of parishes (or, in Wales, community or group of communities), the Common Council of the City of London, the Council of the Isles of Scilly, and any joint committee or joint board established by two or more of the foregoing and, in relation to Scotland, a council constituted under section 2 of the Local Government etc. (Scotland) Act 1994, any two or more such councils and any joint committee or joint board within the meaning of section 235(1) of the Local Government (Scotland) Act 1973.
(5) Any reference in this Act to the amount of any duty of excise on any goods shall be taken to be a reference to the amount of duty charged on those goods with any addition or deduction falling to be made under section 1 of the Excise Duties (Surcharges or Rebates) Act 1979.
(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(8) The question whether, in relation to any supply of services, the supplier or the recipient of the supply belongs in one country or another shall be determined ... in accordance with section 9.
(9) Schedules 7A, 8 and 9 shall be interpreted in accordance with the notes contained in those Schedules; and accordingly the powers conferred by this Act to vary those Schedules include a power to add to, delete or vary those notes.
(10) The descriptions of Groups in those Schedules are for ease of reference only and shall not affect the interpretation of the descriptions of items in those Groups.
(10A) Where—
(a) the grant of any interest, right, licence or facilities gives rise for the purposes of this Act to supplies made at different times after the making of the grant, and
(b) a question whether any of those supplies is zero-rated or exempt falls to be determined according to whether or not the grant is a grant of a description specified in Schedule 8 or 9 or any of paragraphs 5 to 11 of Schedule 10,
that question shall be determined according to whether the description is applicable as at the time of supply, rather than by reference to the time of the grant.
(10B) Notwithstanding subsection (10A) above—
(a) item 1 of Group 1 of Schedule 9 does not make exempt any supply that arises for the purposes of this Act from the prior grant of a fee simple falling within paragraph (a) of that item; and
(b) that paragraph does not prevent the exemption of a supply that arises for the purposes of this Act from the prior grant of a fee simple not falling within that paragraph.
(11) References in this Act to the United Kingdom include the territorial sea of the United Kingdom.
(1) Any order made by the Treasury ... under this Act and any regulations or rules under this Act shall be made by statutory instrument.
(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3) An order to which this subsection applies shall be laid before the House of Commons; and unless it is approved by that House before the expiration of a period of 28 days beginning with the date on which it was made, it shall cease to have effect on the expiration of that period, but without prejudice to anything previously done thereunder or to the making of a new order.
In reckoning any such period no account shall be taken of any time during which Parliament is dissolved or prorogued or during which the House of Commons is adjourned for more than 4 days.
(4) Subject to section 53(4), subsection (3) above applies to—
(aa) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(a) an order under section 5(4) , 7A(6) or 28 , 28 or 40A;
(ab) an order under paragraph 5(7) of Schedule 4 substituting a lesser sum for the sum for the time being specified in paragraph 5(2)(a) of that Schedule;
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(c) an order under this Act making provision—
(i) for increasing the rate of VAT in force under section 2 at the time of the making of the order;
(ii) for excluding any VAT from credit under section 25;
(iia) for varying Schedule 7A so as to cause VAT to be charged on a supply at the rate in force under section 2 instead of that in force under section 29A;
(iii) for varying Schedule 8 or 9 so as to abolish the zero-rating of a supply or to abolish the exemption of a supply without zero-rating it;
(ca) an order under section 43AA(1) if as a result of the order any persons would cease to be eligible to be treated as members of a group;
(d) an order under section 51, except one making only such amendments as are necessary or expedient in consequence of provisions of an order under this Act which—
(i) vary Schedule [7A,] 8 or 9; but
(ii) are not within paragraph (c) above;
(e) an order under section 54(4) or (8).
(ea) an order under section 55A(13);
(eb) an order under section 77A(9) or (9A);
(f) an order under paragraph B1, C1(4), 1A(7), 2A(4) or 8A(7) of Schedule 6;
(fa) an order under paragraph 3(4) of Schedule 10A;
(g) an order under paragraph 3 or 4 of Schedule 11A.
(4A) Where an order under section 2(2) is in force, the reference in subsection (4)(c)(i) of this section to the rate of VAT in force under section 2 at the time of the making of an order is a reference to the rate which would be in force at that time if no such order had been made.
(5) A statutory instrument made under any provision of this Act except—
(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b) an instrument as respects which any other Parliamentary procedure is expressly provided, or
(c) an instrument containing an order appointing a day for the purposes of any provision of this Act, being a day as from which the provision will have effect, with or without amendments, or will cease to have effect,
shall be subject to annulment in pursuance of a resolution of the House of Commons.
97A Place of supply orders: transitional provision.
(1) This section shall have effect for the purpose of giving effect to any order made under section 7A(6), if—
(a) the order provides for services of a description specified in the order to be treated as supplied in the United Kingdom;
(b) the services would not have fallen to be so treated apart from the order;
(c) the services are not services that would have fallen to be so treated under any provision re-enacted in the order; and
(d) the order is expressed to come into force in relation to services supplied on or after a date specified in the order (“the commencement date”).
(2) Invoices and other documents provided to any person before the commencement date shall be disregarded in determining the time of the supply of any services which, if their time of supply were on or after the commencement date, would be treated by virtue of the order as supplied in the United Kingdom.
(3) If there is a payment in respect of any services of the specified description that was received by the supplier before the commencement date, so much (if any) of that payment as relates to times on or after that date shall be treated as if it were a payment received on the commencement date.
(4) If there is a payment in respect of services of the specified description that is or has been received by the supplier on or after the commencement date, so much (if any) of that payment as relates to times before that date shall be treated as if it were a payment received before that date.
(5) Subject to subsection (6) below, a payment in respect of any services shall be taken for the purposes of this section to relate to the time of the performance of those services.
(6) Where a payment is received in respect of any services the performance of which takes place over a period a part of which falls before the commencement date and a part of which does not—
(a) an apportionment shall be made, on a just and reasonable basis, of the extent to which the payment is attributable to so much of the performance of those services as took place before that date;
(b) the payment shall, to that extent, be taken for the purposes of this section to relate to a time before that date; and
(c) the remainder, if any, of the payment shall be taken for those purposes to relate to times on or after that date.
Any notice, notification, requirement or demand to be served on, given to or made of any person for the purposes of this Act may be served, given or made by sending it by post in a letter addressed to that person or his VAT representative at the last or usual residence or place of business of that person or representative.
99 Refund of VAT to Government of Northern Ireland.
The Commissioners shall refund to the Government of Northern Ireland the amount of the VAT charged on the supply of goods or services to that Government ... or on the importation of any goods by that Government ..., after deducting therefrom so much of that amount as may be agreed between them and the Department of Finance and Personnel for Northern Ireland as attributable to supplies ... and importations for the purpose of a business carried on by the Government of Northern Ireland.
100 Savings and transitional provisions, consequential amendments and repeals.
(1) Schedule 13 (savings and transitional provisions) and Schedule 14 (consequential amendments) shall have effect.
(2) The enactments and Orders specified in Schedule 15 are hereby repealed to the extent mentioned in the third column of that Schedule.
(3) This section is without prejudice to the operation of sections 15 to 17 of the Interpretation Act 1978 (which relate to the effect of repeals).
(1) This Act shall come into force on 1st September 1994 and Part I shall have effect in relation to the charge to VAT on supplies, acquisitions and importations in prescribed accounting periods ending on or after that date.
(2) Without prejudice to section 16 of the Interpretation Act 1978 (continuation of proceedings under repealed enactments) except in so far as it enables proceedings to be continued under repealed enactments, section 72 shall have effect on the commencement of this Act to the exclusion of section 39 of the 1983 Act.
(3) This Act extends to Northern Ireland.
(4) Paragraph 23 of Schedule 13 and paragraph 7 of Schedule 14 shall extend to the Isle of Man but no other provision of this Act shall extend there.
The supplies
1 (1) Subject to the following provisions of this Schedule, the supplies falling within this paragraph are—
(a) supplies for qualifying use of—
(i) coal, coke, or other solid substances held out for sale solely as fuel;
(ii) coal gas, water gas, producer gases or similar gases;
(iii) petroleum gases, or other gaseous hydrocarbons, whether in a gaseous or liquid state;
(iv) fuel oil, gas oil or kerosene; or
(v) electricity, heat or air-conditioning;
(aa) supplies of services of installing List A energy-saving materials in residential accommodation or in a building intended for use solely for a relevant charitable purpose;
(ab) supplies of List A energy-saving materials by a person who installs those materials in residential accommodation or a building intended for use solely for a relevant charitable purpose;
(b) supplies to a qualifying person of any services of installing List B energy-saving materials in the qualifying person’s sole or main residence; . . .
(c) supplies of List B energy-saving materials made to a qualifying person by a person who installs those materials in the qualifying person’s sole or main residence.
(d) supplies to a qualifying person of services of connecting, or reconnecting, a mains gas supply to the qualifying person’s sole or main residence;
(e) supplies of goods made to a qualifying person by a person connecting, or reconnecting, a mains gas supply to the qualifying person’s sole or main residence, being goods whose installation is necessary for the connection, or reconnection, of the mains gas supply;
(f) supplies to a qualifying person of services of installing, maintaining or repairing a central heating system in the qualifying person’s sole or main residence;
(g) supplies of goods made to a qualifying person by a person installing, maintaining or repairing a central heating system in the qualifying person’s sole or main residence, being goods whose installation is necessary for the installation, maintenance or repair of the central heating system;
(h) supplies consisting in the leasing of goods that form the whole or part of a central heating system installed in the sole or main residence of a qualifying person;
(i) supplies of goods that form the whole or part of a central heating system installed in a qualifying person’s sole or main residence and that, immediately before being supplied, were goods leased under arrangements such that the consideration for the supplies consisting in the leasing of the goods was, in whole or in part, funded by a grant made under a relevant scheme;
(j) supplies to a qualifying person of services of installing qualifying security goods in the qualifying person’s sole or main residence; and
(k) supplies of qualifying security goods made to a qualifying person by a person who installs those goods in the qualifying person’s sole or main residence.
(1A) A supply to which any of paragraphs (b) to (k) of sub-paragraph (1) above applies is a supply falling within this paragraph only to the extent that the consideration for it—
(a) is, or is to be, funded by a grant made under a relevant scheme; or
(b) in the case of a supply to which paragraph (i) of that sub-paragraph applies—
(i) is, or is to be, funded by such a grant, or
(ii) is a payment becoming due only by reason of the termination (whether by the passage of time or otherwise) of the leasing of the goods in question.
(1B) Where a grant is made under a relevant scheme in order to fund a supply of a description falling within any of paragraphs (b) to (k) of sub-paragraph (1) above (“the relevant supply”) and also to fund a supply to which none of those paragraphs applies (“the non-relevant supply”) then the proportion of the grant that is to be attributed, for the purposes of sub-paragraph (1A) above, to the relevant supply shall be the same proportion as the consideration reasonably attributable to that supply bears to the consideration for that supply and for the non-relevant supply.
(2) In this paragraph “qualifying use” means—
(a) domestic use; or
(b) use by a charity otherwise than in the course or furtherance of a business.
(3) Where there is a supply of goods partly for qualifying use and partly not—
(a) if at least 60 per cent. of the goods are supplied for qualifying use, the whole supply shall be treated as a supply for qualifying use; and
(b) in any other case, an apportionment shall be made to determine the extent to which the supply is a supply for qualifying use.
(4) The supplies falling within this paragraph also include supplies of women’s sanitary protection products.
(5) The supplies falling within this paragraph also include supplies of children’s car seats.
(6) The supplies falling within this paragraph also include—
(a) the supply, in the course of a qualifying conversion, of qualifying services related to the conversion;
(b) the supply of building materials if—
(i) the materials are supplied by a person who, in the course of a qualifying conversion, is supplying qualifying services related to the conversion, and
(ii) those services include the incorporation of the materials in the building concerned or its immediate site.
(7) The supplies falling within this paragraph also include—
(a) the supply, in the course of the renovation or alteration of a single household dwelling, of qualifying services related to the renovation or alteration;
(b) the supply of building materials if—
(i) the materials are supplied by a person who, in the course of the renovation or alteration of a single household dwelling, is supplying qualifying services related to the renovation or alteration, and
(ii) those services include the incorporation of the materials in the dwelling concerned or its immediate site.
(8) Sub-paragraph (9) below applies where a supply of services is only in part a supply to which sub-paragraph (6)(a) or (7)(a) above applies.
(9) The supply, to the extent that it is one to which paragraph (a) of sub-paragraph (6) or (7) above applies, is to be taken to be a supply to which that paragraph applies; and an apportionment may be made to determine that extent.
Interpretation
2 For the purposes of this Schedule the following supplies are always for domestic use—
(a) a supply of not more than one tonne of coal or coke held out for sale as domestic fuel;
(b) a supply of wood, peat or charcoal not intended for sale by the recipient;
(c) a supply to a person at any premises of piped gas (that is, gas within paragraph 1(1)(a)(ii) above, or petroleum gas in a gaseous state, provided through pipes) where the gas (together with any other piped gas provided to him at the premises by the same supplier) was not provided at a rate exceeding 150 therms a month or, if the supplier charges for the gas by reference to the number of kilowatt hours supplied, 4397 kilowatt hours a month;
(d) a supply of petroleum gas in a liquid state where the gas is supplied in cylinders the net weight of each of which is less than 50 kilogrammes and either the number of cylinders supplied is 20 or fewer or the gas is not intended for sale by the recipient;
(e) a supply of petroleum gas in a liquid state, otherwise than in cylinders, to a person at any premises at which he is not able to store more than two tonnes of such gas;
(f) a supply of not more than 2,300 litres of fuel oil, gas oil or kerosene;
(g) a supply of electricity to a person at any premises where the electricity (together with any other electricity provided to him at the premises by the same supplier) was not provided at a rate exceeding 1000 kilowatt hours a month.
3 (1) For the purposes of this Schedule supplies not within paragraph 2 above are for domestic use if and only if the goods supplied are for use in—
(a) a building, or part of a building, which consists of a dwelling or number of dwellings;
(b) a building, or part of a building, used for a relevant residential purpose;
(c) self-catering holiday accommodation;
(d) a caravan; or
(e) a houseboat.
(2) For the purposes of this Schedule use for a relevant residential purpose means use as—
(a) a home or other institution providing residential accommodation for children;
(b) a home or other institution providing residential accommodation with personal care for persons in need of personal care by reason of old age, disablement, past or present dependence on alcohol or drugs or past or present mental disorder;
(c) a hospice;
(d) residential accommodation for students or school pupils;
(e) residential accommodation for members of any of the armed forces;
(f) a monastery, nunnery or similar establishment; or
(g) an institution which is the sole or main residence of at least 90 per cent. of its residents,
except use as a hospital, a prison or similar institution or an hotel or inn or similar establishment.
(3) For the purposes of this Schedule self-catering holiday accommodation includes any accommodation advertised or held out as such.
(4) In this Schedule “houseboat” means a boat or other floating decked structure designed or adapted for use solely as a place of permanent habitation and not having means of, or capable of being readily adapted for, self-propulsion.
4 (1) Paragraph 1(1)(a) (i)above shall be deemed to include combustible materials put up for sale for kindling fires but shall not include matches.
(2) Paragraph 1(1)(a)(ii) and (iii) above shall not include any road fuel gas (within the meaning of the Hydrocarbon Oil Duties Act 1979) on which a duty of excise has been charged or is chargeable.
(3) Paragraph 1(1)(a)(iv) above shall not include hydrocarbon oil on which a duty of excise has been or is to be charged without relief from, or rebate of, such duty by virtue of the provisions of the Hydrocarbon Oil Duties Act 1979.
(4) In this Schedule “fuel oil” means heavy oil which contains in solution an amount of asphaltenes of not less than 0.5 per cent. or which contains less than 0.5 per cent. but not less than 0.1 per cent. of asphaltenes and has a closed flash point not exceeding 150°C.
(5) In this Schedule “gas oil” means heavy oil of which not more than 50 per cent. by volume distils at a temperature not exceeding 240°C and of which more than 50 per cent. by volume distils at a temperature not exceeding 340°C.
(6) In this Schedule “kerosene” means heavy oil of which more than 50 per cent. by volume distils at a temperature not exceeding 240°C.
(7) In this Schedule “heavy oil” shall have the same meaning as in the Hydrocarbon Oil Duties Act 1979.
5 (1) For the purposes of this paragraph—
(a) “the Contributions and Benefits Act” means the Social Security Contributions and Benefits Act 1992 ; and
(b) “the Northern Ireland Act” means the Social Security Contributions and Benefits (Northern Ireland) Act 1992 .
(2) For the purposes of paragraph 1(1) above a person to whom a supply is made is “a qualifying person” if at the time of the supply he—
(a) is aged 60 or over; or
(b) is in receipt of one or more of the benefits mentioned in sub-paragraph (3) below.
(3) The benefits referred to in sub-paragraph (2) above are as follows—
(a) council tax benefit under Part VII of the Contributions and Benefits Act;
(b) disability living allowance under Part III of the Contributions and Benefits Act or Part III of the Northern Ireland Act;
(c) disabled person’s tax credit under Part VII of the Contributions and Benefits Act or Part VII of the Northern Ireland Act;
(d) working families’ tax credit under Part VII of the Contributions and Benefits Act or Part VII of the Northern Ireland Act;
(e) housing benefit under Part VII of the Contributions and Benefits Act or Part VII of the Northern Ireland Act;
(f) an income-based jobseeker’s allowance within the meaning of section 1(4) of the Jobseekers Act 1995 or Article 3(4) of the Jobseekers (Northern Ireland) Order 1995 ;
(g) income support under Part VII of the Contributions and Benefits Act or Part VII of the Northern Ireland Act;
(h) disablement pension under Part V of the Contributions and Benefits Act or Part V of the Northern Ireland Act, which is payable at the increased rate provided for under section 104 (constant attendance allowance) of the Act concerned; and
(i) war disablement pension under the Naval, Military and Air Forces Etc. (Disablement and Death) Service Pensions Order 1983 , which is payable at the increased rate provided for under article 14 (constant attendance allowance) or article 26A (mobility supplement) of that Order.
(3A) For the purposes of paragraph 1(1)(aa) and (ab) above “ residential accommodation ” means—
(a) a building, or part of a building, that consists of a dwelling or a number of dwellings;
(b) a building, or part of a building, used for a relevant residential purpose;
(c) a caravan used as a place of permanent habitation; or
(d) a houseboat.
(3B) For the purposes of paragraph 1(1)(aa) and (ab) above “ use for a relevant charitable purpose ” means use by a charity in either or both of the following ways, namely—
(a) otherwise than in the course or furtherance of a business;
(b) as a village hall or similarly in providing social or recreational facilities for a local community.
(4) For the purposes of paragraph 1(1)(aa) and (ab) above “List A energy-saving materials” means any of the following—
(a) insulation for walls, floors, ceilings, roofs or lofts or for water tanks, pipes or other plumbing fittings;
(b) draught stripping for windows and doors;
(c) central heating system controls (including thermostatic radiator valves);
(d) hot water system controls.
(e) solar panels;
(f) wind turbines;
(g) water turbines.
(4A) For the purposes of paragraph 1(1)(b) and (c) above “ List B energy-saving materials ” means any of the following—
(a) gas-fired room heaters that are fitted with thermostatic controls;
(b) electric storage heaters;
(c) closed solid fuel fire cassettes;
(d) electric dual immersion water heaters with foam-insulated hot water tanks;
(e) gas-fired boilers;
(f) oil-fired boilers;
(g) radiators.
(4B) For the purposes of paragraph 1(1)(j) and (k) above, “ qualifying security goods ” means any of the following—
(a) locks or bolts for windows;
(b) locks, bolts or security chains for doors;
(c) spy holes;
(d) smoke alarms.
(5) For the purposes of paragraph 1 above a scheme is a “relevant scheme” if it is one which—
(a) has as one of its objectives the funding of the installation of energy-saving materials in the homes of any persons who are qualifying persons, and
(b) disburses, whether directly or indirectly, its grants in whole or in part out of funds made available to it in order to achieve that objective—
(i) by the Secretary of State,
(ii) by the European Community,
(iii) under an arrangement approved by the Director General of Electricity Supply, the Director General of Electricity Supply for Northern Ireland or the Director General of Gas Supply, or
(iv) by a local authority .
6 (1) In paragraph 1(4) above “women’s sanitary protection products” means women’s sanitary protection products of any of the following descriptions—
(a) subject to sub-paragraph (2) below, products that are designed, and marketed, as being solely for use for absorbing, or otherwise collecting, lochia or menstrual flow;
(b) panty liners, other than panty liners that are designed as being primarily for use as incontinence products;
(c) sanitary belts.
(2) Sub-paragraph (1)(a) above does not include protective briefs or any other item of clothing.
Interpretation of paragraph 1(5)
7 (1) Paragraph 1(5) above is interpreted in accordance with the provisions of this paragraph.
(2) The following are “ children’s car seats ”—
(a) a safety seat;
(b) the combination of a safety seat and a related wheeled framework;
(c) a booster seat;
(d) a booster cushion.
(3) In this paragraph “ safety seat ” means a seat—
(a) designed to be sat in by a child in a road vehicle,
(b) designed so that, when in use in a road vehicle, it can be restrained—
(i) by a seat belt fitted in the vehicle, or
(ii) by belts, or anchorages, that form part of the seat being attached to the vehicle, or
(iii) in either of those ways, and
(c) incorporating an integral harness, or integral impact shield, for restraining a child seated in it.
(4) For the purposes of this paragraph, a wheeled framework is “ related ” to a safety seat if the framework and the seat are each designed so that—
(a) when the seat is not in use in a road vehicle it can be attached to the framework, and
(b) when the seat is so attached, the combination of the seat and the framework can be used as a child’s pushchair.
(5) In this paragraph “ booster seat ” means a seat designed—
(a) to be sat in by a child in a road vehicle, and
(b) so that, when in use in a road vehicle, it and a child seated in it can be restrained by a seat belt fitted in the vehicle.
(6) In this paragraph “ booster cushion ” means a cushion designed—
(a) to be sat on by a child in a road vehicle, and
(b) so that a child seated on it can be restrained by a seat belt fitted in the vehicle.
(7) In this paragraph “ child ” means a person aged under 14 years.
Interpretation of paragraph 1(6): introductory
8 (1) Paragraph 1(6) above is interpreted in accordance with paragraphs 9 to 17 and 22 below.
(2) In paragraphs 10 to 14 below, “ single household dwelling ” means a dwelling—
(a) that is designed for occupation by a single household, and
(b) in relation to which the conditions set out in sub-paragraph (4) below are satisfied.
(3) In paragraphs 10 to 14 below “ multiple occupancy dwelling ” means a dwelling—
(a) that is designed for occupation by persons not forming a single household, and
(b) in relation to which the conditions set out in sub-paragraph (4) below are satisfied.
(4) The conditions are—
(a) that the dwelling consists of self-contained living accommodation,
(b) that there is no provision for direct internal access from the dwelling to any other dwelling or part of a dwelling,
(c) that the separate use of the dwelling is not prohibited by the terms of any covenant, statutory planning consent or similar provision, and
(d) that the separate disposal of the dwelling is not prohibited by any such terms.
(5) For the purposes of this paragraph, a dwelling “ is designed ” for occupation of a particular kind if it is so designed—
(a) as a result of having been originally constructed for occupation of that kind and not having been subsequently adapted for occupation of any other kind, or
(b) as a result of adaptation.
Interpretation of paragraph 1(6): meaning of “qualifying conversion”
9 (1) A “qualifying conversion” means—
(a) a changed number of dwellings conversion (see paragraph 10 below);
(b) house in multiple occupation conversion (see paragraph 11 below); or
(c) a special residential conversion (see paragraph 12 below).
(2) Sub-paragraph (1) above is subject to paragraphs 14 and 15 below.
Interpretation of paragraph 1(6): meaning of “changed number of dwellings conversion”
10 (1) A “changed number of dwellings conversion” is—
(a) a conversion of premises consisting of a building where the conditions specified in this paragraph are satisfied, or
(b) a conversion of premises consisting of a part of a building where those conditions are satisfied.
(2) The first condition is that after the conversion the premises being converted contain a number of single household dwellings that is—
(a) different from the number (if any) that the premises contain before the conversion, and
(b) greater than, or equal to, one.
(3) The second condition is that there is no part of the premises being converted that is a part that after the conversion contains the same number of single household dwellings (whether zero, one or two or more) as before the conversion.
Interpretation of paragraph 1(6): meaning of “house in multiple occupation conversion”
11 (1) A “house in multiple occupation conversion” is—
(a) a conversion of premises consisting of a building where the condition specified in sub-paragraph (2) below is satisfied, or
(b) a conversion of premises consisting of a part of a building where that condition is satisfied.
(2) The condition is that—
(a) before the conversion the premises being converted contain only a single household dwelling or two or more such dwellings,
(b) after the conversion those premises contain only a multiple occupancy dwelling or two or more such dwellings, and
(c) the use to which those premises are intended to be put after the conversion is not to any extent use for a qualifying residential purpose (see paragraph 17 below).
Interpretation of paragraph 1(6): meaning of “special residential conversion”
12 (1) A “special residential conversion” is a conversion of premises consisting of—
(a) a building or two or more buildings,
(b) a part of a building or two or more parts of buildings, or
(c) a combination of—
(i) a building or two or more buildings, and
(ii) a part of a building or two or more parts of buildings,
where the conditions specified in this paragraph are satisfied.
(2) The first condition is that, before the conversion, the premises being converted contain only—
(a) a dwelling or two or more dwellings, or
(b) a dwelling, or two or more dwellings, and—
(i) an ancillary outbuilding occupied together with the dwelling or one or more of the dwellings, or
(ii) two or more ancillary outbuildings each occupied together with the dwelling or one or more of the dwellings.
(3) In sub-paragraph (2) above “dwelling” means single household dwelling or multiple occupancy dwelling.
(4) The second condition is that where before the conversion the premises being converted contain a multiple occupancy dwelling or two or more such dwellings, the use to which that dwelling, or any of those dwellings, was last put before the conversion was not to any extent use for a qualifying residential purpose (see paragraph 17 below).
(5) The third condition is that the premises being converted must be intended to be used after the conversion solely for a qualifying residential purpose.
(6) The fourth condition is that, where the qualifying residential purpose is an institutional purpose, the premises being converted must be intended to form after the conversion the entirety of an institution used for that purpose.
(7) In sub-paragraph (6) above “institutional purpose” means a purpose within paragraph 17(a) to (c), (f) or (g) below.
Special residential conversions: reduced rate only for supplies made to intended user of converted accommodation
13 (1) This paragraph applies where the qualifying conversion concerned is a special residential conversion.
(2) Paragraph 1(6)(a) or (b) above does not apply to a supply unless—
(a) it is made to a person who intends to use the premises being converted for the qualifying residential purpose, and
(b) before it is made, the person to whom it is made has given to the person making it a certificate that satisfies the requirements in sub-paragraph (3) below.
(3) Those requirements are that the certificate—
(a) is in such form as may be specified in a notice published by the Commissioners, and
(b) states that the conversion is a special residential conversion.
(4) In sub-paragraph (2)(a) above “the qualifying residential purpose” means the purpose within paragraph 17 below for which the premises being converted are intended to be used after the conversion.
Interpretation of paragraph 1(6): “qualifying conversion” includes related garage works
14 (1) A qualifying conversion includes any garage works related to the—
(a) changed number of dwellings conversion,
(b) house in multiple occupation conversion, or
(c) special residential conversion,
concerned.
(2) In this paragraph “garage works” means—
(a) the construction of a garage, or
(b) a conversion of a non-residential building, or of a non-residential part of a building, that results in a garage.
(3) For the purposes of sub-paragraph (1) above, garage works are “related” to a conversion if—
(a) they are carried out at the same time as the conversion, and
(b) the resulting garage is intended to be occupied with—
(i) where the conversion concerned is a changed number of dwellings conversion, a single household dwelling that will after the conversion be contained in the building, or part of a building, being converted,
(ii) where the conversion concerned is a house in multiple occupation conversion, a multiple occupancy dwelling that will after the conversion be contained in the building, or part of a building, being converted, or
(iii) where the conversion concerned is a special residential conversion, the institution or other accommodation resulting from the conversion.
(4) In sub-paragraph (2) above “non-residential” means neither designed, nor adapted, for use—
(a) as a dwelling or two or more dwellings, or
(b) for a qualifying residential purpose (see paragraph 17 below).
Interpretation of paragraph 1(6): conversion not “qualifying” if planning consent and building control approval not obtained
15 (1) A conversion is not a qualifying conversion if any statutory planning consent needed for the conversion has not been granted.
(2) A conversion is not a qualifying conversion if any statutory building control approval needed for the conversion has not been granted.
Interpretation of paragraph 1(6): meaning of “supply of qualifying services”
16 (1) In the case of a conversion of a building, “supply of qualifying services” means a supply of services that consists in—
(a) the carrying out of works to the fabric of the building, or
(b) the carrying out of works within the immediate site of the building that are in connection with—
(i) the means of providing water, power, heat or access to the building,
(ii) the means of providing drainage or security for the building, or
(iii) the provision of means of waste disposal for the building.
(2) In the case of a conversion of part of a building, “supply of qualifying services” means a supply of services that consists in—
(a) the carrying out of works to the fabric of the part, or
(b) the carrying out of works to the fabric of the building, or within the immediate site of the building, that are in connection with—
(i) the means of providing water, power, heat or access to the part,
(ii) the means of providing drainage or security for the part, or
(iii) the provision of means of waste disposal for the part.
(3) In this paragraph—
(a) references to the carrying out of works to the fabric of a building do not include the incorporation, or installation as fittings, in the building of any goods that are not building materials (see paragraph 22 below);
(b) references to the carrying out of works to the fabric of a part of a building do not include the incorporation, or installation as fittings, in the part of any goods that are not building materials.
Interpretation of paragraphs 11 to 14: meaning of “qualifying residential purpose”
17 For the purposes of paragraphs 11 to 14 above, “use for a qualifying residential purpose” means use as—
(a) a home or other institution providing residential accommodation for children,
(b) a home or other institution providing residential accommodation with personal care for persons in need of personal care by reason of old age, disablement, past or present dependence on alcohol or drugs or past or present mental disorder,
(c) a hospice,
(d) residential accommodation for students or school pupils,
(e) residential accommodation for members of any of the armed forces,
(f) a monastery, nunnery or similar establishment, or
(g) an institution which is the sole or main residence of at least 90 per cent. of its residents,
except use as a hospital, prison or similar institution or an hotel, inn or similar establishment.
Interpretation of paragraph 1(7): introductory
18 (1) Paragraph 1(7) above is interpreted in accordance with this paragraph and paragraphs 19 to 22 below.
(2) For the purposes of paragraph 1(7) above (and paragraphs 19 to 21 below)—
“alteration” includes extension;
“single household dwelling” has the meaning given by paragraph 8(2), (4) and (5) above.
Paragraph 1(7) only applies where dwelling has been empty for at least 3 years
19 (1) Paragraph 1(7) above does not apply to a supply unless either of the empty home conditions is satisfied.
(2) The first “empty home condition” is that the dwelling concerned has not been lived in during the period of 3 years ending with the commencement of the relevant works.
(3) The second “empty home condition” is that—
(a) the dwelling was not lived in during a period of at least 3 years;
(b) the person, or one of the persons, whose beginning to live in the dwelling brought that period to an end was a person who (whether alone or jointly with another or others) acquired the dwelling at a time—
(i) no later than the end of that period, and
(ii) when the dwelling had been not lived in for at least 3 years;
(c) no works by way of renovation or alteration were carried out to the dwelling during the period of 3 years ending with the acquisition;
(d) the supply is made to a person who is—
(i) the person, or one of the persons, whose beginning to live in the property brought to an end the period mentioned in paragraph (a) above, and
(ii) the person, or one of the persons, who acquired the dwelling as mentioned in paragraph (b) above; and
(e) the relevant works are carried out during the period of one year beginning with the day of the acquisition.
(4) In this paragraph “the relevant works” means—
(a) where the supply is of the description set out in paragraph 1(7)(a) above, the works that constitute the services supplied;
(b) where the supply is of the description set out in paragraph 1(7)(b) above, the works by which the materials concerned are incorporated in the dwelling concerned or its immediate site.
(5) In sub-paragraph (3) above, references to a person acquiring a dwelling are to that person having a major interest in the dwelling granted, or assigned, to him for a consideration.
Paragraph 1(7) only applies if planning consent and building control approval obtained
20 (1) Paragraph 1(7) above does not apply to a supply unless any statutory planning consent needed for the renovation or alteration has been granted.
(2) Paragraph 1(7) above does not apply to a supply unless any statutory building control approval needed for the renovation or alteration has been granted.
Interpretation of paragraph 1(7): meaning of “supply of qualifying services”
21 (1) “Supply of qualifying services” means a supply of services that consists in—
(a) the carrying out of works to the fabric of the dwelling, or
(b) the carrying out of works within the immediate site of the dwelling that are in connection with—
(i) the means of providing water, power, heat or access to the dwelling,
(ii) the means of providing drainage or security for the dwelling, or
(iii) the provision of means of waste disposal for the dwelling.
(2) In sub-paragraph (1)(a) above, the reference to the carrying out of works to the fabric of the dwelling does not include the incorporation, or installation as fittings, in the dwelling of any goods that are not building materials (see paragraph 22 below).
Interpretation of paragraph 1(6) and (7): meaning of “building materials”
22 “Building materials” has the meaning given by Notes (22) and (23) of Group 5 to Schedule 8 (zero-rating of construction and conversion of buildings).
SCHEDULE 1 Registration in respect of taxable supplies : UK establishment
Section 3(2).
Liability to be registered
1 (1) Subject to sub-paragraphs (3) to (7) below, a person who makes taxable supplies but is not registered under this Act becomes liable to be registered under this Schedule—
(a) at the end of any month, if the person is UK-established and the value of his taxable supplies in the period of one year then ending has exceeded £90,000; or
(b) at any time, if the person is UK-established and there are reasonable grounds for believing that the value of his taxable supplies in the period of 30 days then beginning will exceed £90,000.
(2) Where a business , or part of a business, carried on by a taxable person is transferred to another person as a going concern, the transferee is UK-established at the time of the transfer and the transferee is not registered under this Act at that time, then, subject to sub-paragraphs (3) to (7) below, the transferee becomes liable to be registered under this Schedule at that time if—
(a) the value of his taxable supplies in the period of one year ending at the time of the transfer has exceeded £90,000; or
(b) there are reasonable grounds for believing that the value of his taxable supplies in the period of 30 days beginning at the time of the transfer will exceed £90,000.
(2A) In determining the value of a person's supplies for the purposes of sub-paragraph (1)(a) or (2)(a), supplies are to be taken into account (subject to sub-paragraphs (3) to (7)) whether or not the person was UK-established when they were made.
(3) A person does not become liable to be registered by virtue of sub-paragraph (1)(a) or (2)(a) above if the Commissioners are satisfied that the value of his taxable supplies in the period of one year beginning at the time at which, apart from this sub-paragraph, he would become liable to be registered will not exceed £88,000.
(4) In determining the value of a person’s supplies for the purposes of sub-paragraph (1)(a) or (2)(a) above, supplies made at a time when he was previously registered under this Act shall be disregarded if—
(a) his registration was cancelled otherwise than under paragraph 13(3) below, paragraph 11 of Schedule 1A... or paragraph 6(2) of Schedule 3A, and
(b) the Commissioners are satisfied that before his registration was cancelled he had given them all the information they needed in order to determine whether to cancel the registration.
(5) A person shall be treated as having become liable to be registered under this Schedule at any time when he would have become so liable under the preceding provisions of this paragraph but for any registration which is subsequently cancelled under paragraph 13(3) below, paragraph 11 of Schedule 1A... or paragraph 6(2) of Schedule 3A.
(6) A person shall not cease to be liable to be registered under this Schedule except in accordance with paragraph 2(5), 3 or 4 below.
(7) In determining the value of a person’s supplies for the purposes of sub-paragraph (1) or (2) above, supplies of goods or services that are capital assets of the business in the course or furtherance of which they are supplied ... shall be disregarded.
(8) Where, apart from this sub-paragraph, an interest in, right over or licence to occupy any land would under sub-paragraph (7) above be disregarded for the purposes of sub-paragraph (1) or (2) above, it shall not be if it is supplied on a taxable supply which is not zero-rated.
(9) In determining the value of a person’s supplies for the purposes of sub-paragraph (1) or (2) above, supplies to which section 18B(4) (last ... supply of goods before removal from fiscal warehousing) applies and supplies treated as made by him under section 18C(3) (self-supply of services on removal of goods from warehousing) shall be disregarded.
(10) A person is “UK-established” if the person has a business establishment, or some other fixed establishment, in the United Kingdom in relation to a business carried on by the person.
1A (1) Paragraph 2 below is for the purpose of preventing the maintenance or creation of any artificial separation of business activities carried on by two or more persons from resulting in an avoidance of VAT.
(2) In determining for the purposes of sub-paragraph (1) above whether any separation of business activities is artificial, regard shall be had to the extent to which the different persons carrying on those activities are closely bound to one another by financial, economic and organisational links.
2 (1) Without prejudice to paragraph 1 above, if the Commissioners make a direction under this paragraph, the persons named in the direction shall be treated as a single taxable person carrying on the activities of a business described in the direction and that taxable person shall be liable to be registered under this Schedule with effect from the date of the direction or, if the direction so provides, from such later date as may be specified therein.
(2) The Commissioners shall not make a direction under this paragraph naming any person unless they are satisfied—
(a) that he is making or has made taxable supplies; and
(b) that the activities in the course of which he makes or made those taxable supplies form only part of certain activities . . ., the other activities being carried on concurrently or previously (or both) by one or more other persons; and
(c) that, if all the taxable supplies of the business described in the direction were taken into account, a person carrying on that business would at the time of the direction be liable to be registered by virtue of paragraph 1 above; . . .
(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3) A direction made under this paragraph shall be served on each of the persons named in it.
(4) Where, after a direction has been given under this paragraph specifying a description of business, it appears to the Commissioners that a person who was not named in that direction is making taxable supplies in the course of activities which should . . . be regarded as part of the activities of that business, the Commissioners may make and serve on him a supplementary direction referring to the earlier direction and the description of business specified in it and adding that person’s name to those of the persons named in the earlier direction with effect from—
(a) the date on which he began to make those taxable supplies, or
(b) if it was later, the date with effect from which the single taxable person referred to in the earlier direction became liable to be registered under this Schedule.
(5) If, immediately before a direction (including a supplementary direction) is made under this paragraph, any person named in the direction is registered in respect of the taxable supplies made by him as mentioned in sub-paragraph (2) or (4) above, he shall cease to be liable to be so registered with effect from whichever is the later of—
(a) the date with effect from which the single taxable person concerned became liable to be registered; and
(b) the date of the direction.
(6) In relation to a business specified in a direction under this paragraph, the persons named in the direction, together with any person named in a supplementary direction relating to that business (being the persons who together are to be treated as the taxable person), are in sub-paragraphs (7) and (8) below referred to as “the constituent members”.
(7) Where a direction is made under this paragraph then, for the purposes of this Act—
(a) the taxable person carrying on the business specified in the direction shall be registerable in such name as the persons named in the direction may jointly nominate by notice in writing given to the Commissioners not later than 14 days after the date of the direction or, in default of such a nomination, in such name as may be specified in the direction;
(b) any supply of goods or services by or to one of the constituent members in the course of the activities of the taxable person shall be treated as a supply by or to that person;
(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(d) each of the constituent members shall be jointly and severally liable for any VAT due from the taxable person;
(e) without prejudice to paragraph (d) above, any failure by the taxable person to comply with any requirement imposed by or under this Act shall be treated as a failure by each of the constituent members severally; and
(f) subject to paragraphs (a) to (e) above, the constituent members shall be treated as a partnership carrying on the business of the taxable person and any question as to the scope of the activities of that business at any time shall be determined accordingly.
(8) If it appears to the Commissioners that any person who is one of the constituent members should no longer be regarded as such for the purposes of paragraphs (d) and (e) of sub-paragraph (7) above and they give notice to that effect, he shall not have any liability by virtue of those paragraphs for anything done after the date specified in that notice and, accordingly, on that date he shall be treated as having ceased to be a member of the partnership referred to in paragraph (f) of that sub-paragraph.
3 A person who has become liable to be registered under this Schedule shall cease to be so liable at any time if the Commissioners are satisfied in relation to that time that he—
(a) has ceased to make taxable supplies; or
(b) is not at that time a person in relation to whom any of the conditions specified in paragraphs 1(1)(a) and (b) and (2)(a) and (b) above is satisfied; or
(c) is not at that time UK-established (see paragraph 1(10)).
4 (1) Subject to sub-paragraph (2) below, a person who has become liable to be registered under this Schedule shall cease to be so liable at any time after being registered if the Commissioners are satisfied that the value of his taxable supplies in the period of one year then beginning will not exceed £88,000.
(2) A person shall not cease to be liable to be registered under this Schedule by virtue of sub-paragraph (1) above if the Commissioners are satisfied that the reason the value of his taxable supplies will not exceed £88,000 is that in the period in question he will cease making taxable supplies, or will suspend making them for a period of 30 days or more.
(3) In determining the value of a person’s supplies for the purposes of sub-paragraph (1) above, supplies of goods or services that are capital assets of the business in the course or furtherance of which they are supplied ... shall be disregarded.
(4) Where, apart from this sub-paragraph, an interest in, right over or licence to occupy any land would under sub-paragraph (3) above be disregarded for the purposes of sub-paragraph (1) above, it shall not be if it is supplied on a taxable supply which is not zero-rated.
Notification of liability and registration
5 (1) A person who becomes liable to be registered by virtue of paragraph 1(1)(a) above shall notify the Commissioners of the liability within 30 days of the end of the relevant month.
(2) The Commissioners shall register any such person (whether or not he so notifies them) with effect from the end of the month following the relevant month or from such earlier date as may be agreed between them and him.
(3) In this paragraph “the relevant month”, in relation to a person who becomes liable to be registered by virtue of paragraph 1(1)(a) above, means the month at the end of which he becomes liable to be so registered.
6 (1) A person who becomes liable to be registered by virtue of paragraph 1(1)(b) above shall notify the Commissioners of the liability before the end of the period by reference to which the liability arises.
(2) The Commissioners shall register any such person (whether or not he so notifies them) with effect from the beginning of the period by reference to which the liability arises.
7 (1) A person who becomes liable to be registered by virtue of paragraph 1(2) above shall notify the Commissioners of the liability within 30 days of the time when the business is transferred.
(2) The Commissioners shall register any such person (whether or not he so notifies them) with effect from the time when the business is transferred.
8 Where a person becomes liable to be registered by virtue of paragraph 1(1)(a) above and by virtue of paragraph 1(1)(b) or 1(2) above at the same time, the Commissioners shall register him in accordance with paragraph 6(2) or 7(2) above, as the case may be, rather than paragraph 5(2) above.
Entitlement to be registered
9 Where a person who is not liable to be registered under this Act and is not already so registered satisfies the Commissioners that he—
(a) makes taxable supplies; or
(b) is carrying on a business and intends to make such supplies in the course or furtherance of that business,
they shall, if he so requests, register him with effect from the day on which the request is made or from such earlier date as may be agreed between them and him.
10 (1) Where a person who is not liable to be registered under this Act and is not already so registered satisfies the Commissioners that he—
(a) makes supplies within sub-paragraph (2) below; or
(b) is carrying on a business and intends to make such supplies in the course or furtherance of that business,
and (in either case) is within sub-paragraph (3) below, they shall, if he so requests, register him with effect from the day on which the request is made or from such earlier date as may be agreed between them and him.
(2) A supply is within this sub-paragraph if—
(a) it is made outside the United Kingdom but would be a taxable supply if made in the United Kingdom; or
(b) it is specified for the purposes of subsection (2) of section 26 in an order made under paragraph (c) of that subsection.
(3) A person is within this sub-paragraph if—
(a) he has a business establishment in the United Kingdom or his usual place of residence is in the United Kingdom; and
(b) he does not make and does not intend to make taxable supplies.
(4) For the purposes of this paragraph—
(a) a person carrying on a business through a branch or agency in the United Kingdom shall be treated as having a business establishment in the United Kingdom, and
(b) “usual place of residence”, in relation to a body corporate, means the place where it is legally constituted.
Notification of end of liability or entitlement etc
11 A person registered under paragraph 5, 6 or 9 above who ceases to make or have the intention of making taxable supplies shall notify the Commissioners of that fact within 30 days of the day on which he does so unless he would, when he so ceases, be otherwise liable or entitled to be registered under this Act if his registration and any enactment preventing a person from being liable to be registered under different provisions at the same time were disregarded.
12 A person registered under paragraph 10 above who—
(a) ceases to make or have the intention of making supplies within sub-paragraph (2) of that paragraph; or
(b) makes or forms the intention of making taxable supplies,
shall notify the Commissioners of that fact within 30 days of the day on which he does so unless, in the case of a person ceasing as mentioned in sub-paragraph (a) above, he would, when he so ceases, be otherwise liable or entitled to be registered under this Act if his registration and any enactment preventing a person from being liable to be registered under different provisions at the same time were disregarded.
Cancellation of registration
13 (1) Subject to sub-paragraph (4) below, where a registered person satisfies the Commissioners that he is not liable to be registered under this Schedule, they shall, if he so requests, cancel his registration with effect from the day on which the request is made or from such later date as may be agreed between them and him.
(2) Subject to sub-paragraph (5) below, where the Commissioners are satisfied that a registered person has ceased to be registrable, they may cancel his registration with effect from the day on which he so ceased or from such later date as may be agreed between them and him.
(3) Where the Commissioners are satisfied that on the day on which a registered person was registered he was not registrable, they may cancel his registration with effect from that day.
(4) The Commissioners shall not under sub-paragraph (1) above cancel a person’s registration with effect from any time unless they are satisfied that it is not a time when that person would be subject to a requirement to be registered under this Act.
(5) The Commissioners shall not under sub-paragraph (2) above cancel a person’s registration with effect from any time unless they are satisfied that it is not a time when that person would be subject to a requirement, or entitled, to be registered under this Act.
(6) In determining for the purposes of sub-paragraph (4) or (5) above whether a person would be subject to a requirement, or entitled, to be registered at any time, so much of any provision of this Act as prevents a person from becoming liable or entitled to be registered when he is already registered or when he is so liable under any other provision shall be disregarded.
(7) In this paragraph, any reference to a registered person is a reference to a person who is registered under this Schedule.
(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Exemption from registration
14 (1) Notwithstanding the preceding provisions of this Schedule, where a person who makes or intends to make taxable supplies satisfies the Commissioners that any such supply is zero-rated or would be zero-rated if he were a taxable person, they may, if he so requests and they think fit, exempt him from registration under this Schedule until it appears to them that the request should no longer be acted upon or is withdrawn.
(2) Where there is a material change in the nature of the supplies made by a person exempted under this paragraph from registration under this Schedule, he shall notify the Commissioners of the change—
(a) within 30 days of the date on which it occurred; or
(b) if no particular day is identifiable as the day on which it occurred, within 30 days of the end of the quarter in which it occurred.
(3) Where there is a material alteration in any quarter in the proportion of taxable supplies of such a person that are zero-rated, he shall notify the Commissioners of the alteration within 30 days of the end of the quarter.
Power to vary specified sums by order
15 The Treasury may by order substitute for any of the sums for the time being specified in this Schedule such greater sums as they think fit.
Supplementary
16 The value of a supply of goods or services shall be determined for the purposes of this Schedule on the basis that no VAT is chargeable on the supply.
17 Any notification required under this Schedule shall be made in such form and manner and shall contain such particulars as may be specified in regulations or by the Commissioners in accordance with regulations.
18 In this Schedule “registrable” means liable or entitled to be registered under this Schedule.
19 References in this Schedule to supplies are references to supplies made in the course or furtherance of a business.
SCHEDULE 1A Registration in respect of taxable supplies: non-uk establishment
Liability to be registered
1 (1) A person becomes liable to be registered under this Schedule at any time if conditions A to D are met.
(2) Condition A is that—
(a) the person makes taxable supplies, or
(b) there are reasonable grounds for believing that the person will make taxable supplies in the period of 30 days then beginning.
(3) Condition B is that those supplies (or any of them) are or will be made in the course or furtherance of a business carried on by the person.
(4) Condition C is that the person has no business establishment, or other fixed establishment, in the United Kingdom in relation to any business carried on by the person.
(5) Condition D is that the person is not registered under this Act.
2 (1) A person does not become liable to be registered by virtue of paragraph 1(2)(b) if the reason for believing that taxable supplies will be made in the 30-day period mentioned there is that a business, or part of a business, carried on by a taxable person is to be transferred to the person as a going concern in that period.
(2) But if the transfer takes place, the transferee becomes liable to be registered under this Schedule at the time of the transfer if conditions A to D in paragraph 1 are met in relation to the transferee at that time.
(3) In determining for the purposes of sub-paragraph (2) whether condition B is met, the reference in paragraph 1(3) to a business is to be read as a reference to the business, or part of the business, that is transferred to the transferee.
3 A person is treated as having become liable to be registered under this Schedule at any time when the person would have become so liable under paragraph 1 or 2 but for any registration that is subsequently cancelled under—
(a) paragraph 11,
(b) paragraph 13(3) of Schedule 1,
(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(d) ... or
(e) paragraph 6(2) of Schedule 3A.
4 (1) A person does not cease to be liable to be registered under this Schedule except in accordance with sub-paragraph (2).
(2) A person who has become liable to be registered under this Schedule ceases to be so liable at any time if the Commissioners are satisfied that—
(a) the person has ceased to make taxable supplies in the course or furtherance of a business carried on by the person, or
(b) the person is no longer a person in relation to whom condition C in paragraph 1 is met.
Notification of liability and registration
5 (1) A person who becomes liable to be registered by virtue of paragraph 1(2)(a) or 2(2) must notify the Commissioners of the liability before the end of the period of 30 days beginning with the day on which the liability arises.
(2) The Commissioners must register any such person (whether or not the person so notifies them) with effect from the beginning of the day on which the liability arises.
6 (1) A person who becomes liable to be registered by virtue of paragraph 1(2)(b) must notify the Commissioners of the liability before the end of the period by reference to which the liability arises.
(2) The Commissioners must register any such person (whether or not the person so notifies them) with effect from the beginning of the period by reference to which the liability arises.
Notification of end of liability
7 (1) A person registered under paragraph 5 or 6 who, on any day, ceases to make or have the intention of making taxable supplies in the course or furtherance of a business carried on by that person must notify the Commissioners of that fact within 30 days beginning with that day.
(2) But the person need not notify the Commissioners if on that day the person would otherwise be liable or entitled to be registered under this Act (disregarding for this purpose the person's registration under this Schedule and any enactment that prevents a person from being liable to be registered under different provisions at the same time).
Cancellation of registration
8 (1) The Commissioners must cancel a person's registration under this Schedule if—
(a) the person satisfies them that the person is not liable to be registered under this Schedule, and
(b) the person requests the cancellation.
(2) The cancellation is to be made with effect from—
(a) the day on which the request is made, or
(b) such later day as may be agreed between the Commissioners and the person.
(3) But the Commissioners must not cancel the registration with effect from any time unless they are satisfied that it is not a time when the person would be subject to a requirement to be registered under this Act.
9 (1) The Commissioners may cancel a person's registration under this Schedule if they are satisfied that the person has ceased to be liable to be registered under this Schedule.
(2) The cancellation is to be made with effect from—
(a) the day on which the person ceased to be so liable, or
(b) such later day as may be agreed between the Commissioners and the person.
(3) But the Commissioners must not cancel the registration with effect from any time unless they are satisfied that it is not a time when the person would be subject to a requirement, or entitled, to be registered under this Act.
10 In determining for the purposes of paragraphs 8 and 9 whether a time is a time when a person would be subject to a requirement, or entitled, to be registered under this Act, so much of any provision of this Act as prevents a person from becoming liable or entitled to be registered when the person is already registered or when the person is so liable under any other provision must be disregarded.
11 (1) The Commissioners may cancel a person's registration under this Schedule if they are satisfied that the person was not liable to be registered under this Schedule on the day on which the person was registered.
(2) The cancellation is to be made with effect from the day on which the person was registered.
12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Exemption from registration
13 (1) The Commissioners may exempt a person from registration under this Schedule if the person satisfies them that the taxable supplies that the person makes or intends to make—
(a) are all zero-rated, or
(b) would all be zero-rated if the person were a taxable person.
(2) The power in sub-paragraph (1) is exercisable only if the person so requests and the Commissioners think fit.
(3) If there is a material change in the nature of the supplies made by a person exempted under this paragraph, the person must notify the Commissioners of the change—
(a) within 30 days beginning with the day on which the change occurred, or
(b) if no particular day is identifiable as that day, within 30 days of the end of the quarter in which the change occurred.
(4) If it appears to the Commissioners that a request under this paragraph should no longer be acted upon on or after any day or has been withdrawn on any day, they must register the person who made the request with effect from that day.
(5) A reference in this paragraph to supplies is to supplies made in the course or furtherance of a business carried on by the person.
Supplementary
14 Any notification required under this Schedule must be made in such form and manner and must contain such particulars as may be specified in regulations or by the Commissioners in accordance with regulations.
SCHEDULE 3A Registration in respect of disposals of assets for which a VAT repayment is claimed
Liability to be registered
1 (1) A person who is not registered under this Act, and is not liable to be registered under Schedule 1 or 1A, becomes liable to be registered under this Schedule at any time—
(a) if he makes relevant supplies; or
(b) if there are reasonable grounds for believing that he will make such supplies in the period of 30 days then beginning.
(2) A person shall be treated as having become liable to be registered under this Schedule at any time when he would have become so liable under sub-paragraph (1) above but for any registration which is subsequently cancelled under paragraph 6(2) below, paragraph 13(3) of Schedule 1 or paragraph 11 of Schedule 1A.
(3) A person shall not cease to be liable to be registered under this Schedule except in accordance with paragraph 2 below.
2 A person who has become liable to be registered under this Schedule shall cease to be so liable at any time if the Commissioners are satisfied that he has ceased to make relevant supplies.
Notification of liability and registration
3 (1) A person who becomes liable to be registered by virtue of paragraph 1(1)(a) above shall notify the Commissioners of the liability before the end of the period of 30 days beginning with the day on which the liability arises.
(2) The Commissioners shall register any such person (whether or not he so notifies them) with effect from the beginning of the day on which the liability arises.
4 (1) A person who becomes liable to be registered by virtue of paragraph 1(1)(b) above shall notify the Commissioners of the liability before the end of the period by reference to which the liability arises.
(2) The Commissioners shall register any such person (whether or not he so notifies them) with effect from the beginning of the period by reference to which the liability arises.
Notification of end of liability
5 (1) Subject to sub-paragraph (2) below, a person registered under paragraph 3 or 4 above who ceases to make or have the intention of making relevant supplies shall notify the Commissioners of that fact within 30 days of the day on which he does so.
(2) Sub-paragraph (1) above does not apply if the person would, when he so ceases, be otherwise liable or entitled to be registered under this Act if his registration and any enactment preventing a person from being liable to be registered under different provisions at the same time were disregarded.
Cancellation of registration
6 (1) Subject to sub-paragraph (3) below, where the Commissioners are satisfied that a registered person has ceased to be liable to be registered under this Schedule, they may cancel his registration with effect from the day on which he so ceased or from such later date as may be agreed between them and him.
(2) Where the Commissioners are satisfied that on the day on which a registered person was registered he was not registrable, they may cancel his registration with effect from that day.
(3) The Commissioners shall not under sub-paragraph (1) above cancel a person’s registration with effect from any time unless they are satisfied that it is not a time when that person would be subject to a requirement, or entitled, to be registered under this Act.
(4) In determining for the purposes of sub-paragraph (3) above whether a person would be subject to a requirement, or entitled, to be registered at any time, so much of any provision of this Act as prevents a person from becoming liable or entitled to be registered when he is already registered or when he is so liable under any other provision shall be disregarded.
Exemption from registration
7 (1) Notwithstanding the preceding provisions of this Schedule, where a person who makes or intends to make relevant supplies satisfies the Commissioners that any such supply is zero-rated or would be zero-rated if he were a taxable person, they may, if he so requests and they think fit, exempt him from registration under this Schedule.
(2) Where there is a material change in the nature of the supplies made by a person exempted under this paragraph from registration under this Schedule, he shall notify the Commissioners of the change—
(a) within 30 days of the date on which the change occurred; or
(b) if no particular date is identifiable as the day on which it occurred, within 30 days of the end of the quarter in which it occurred.
(3) Where there is a material alteration in any quarter in the proportion of relevant supplies of such a person that are zero-rated, he shall notify the Commissioners of the alteration within 30 days of the end of the quarter.
(4) If it appears to the Commissioners that a request under sub-paragraph (1) above should no longer have been acted upon on or after any day, or has been withdrawn on any day, they shall register the person who made the request with effect from that day.
Supplementary
8 Any notification required under this Schedule shall be made in such form and manner and shall contain such particulars as may be specified in regulations or by the Commissioners in accordance with regulations.
9 (1) For the purposes of this Schedule a supply of goods is a relevant supply where—
(a) the supply is a taxable supply;
(b) the goods are assets of the business in the course or furtherance of which they are supplied; and
(c) the person by whom they are supplied, or a predecessor of his, has received or claimed, or is intending to claim, a repayment of VAT on the supply to him, or the importation by him, of the goods or of anything comprised in them.
(2) In relation to any goods, a person is the predecessor of another for the purposes of this paragraph if—
(a) that other person is a person to whom he has transferred assets of his business by a transfer of that business, or part of it, as a going concern;
(b) those assets consisted of or included those goods; and
(c) the transfer of the assets is one falling by virtue of an order under section 5(3) (or under an enactment re-enacted in section 5(3)) to be treated as neither a supply of goods nor a supply of services;
and the reference in this paragraph to a person’s predecessor includes references to the predecessors of his predecessor through any number of transfers.
(3) The reference in this paragraph to a repayment of VAT is a reference to such a repayment under a scheme embodied in regulations made under section 39.
SCHEDULE 4 Matters to be treated as supply of goods or services
Section 5.
1 (1) Any transfer of the whole property in goods is a supply of goods; but, subject to sub-paragraph (2) below, the transfer—
(a) of any undivided share of the property, or
(b) of the possession of goods,
is a supply of services.
(2) If the possession of goods is transferred—
(a) under an agreement for the sale of the goods, or
(b) under agreements which expressly contemplate that the property also will pass at some time in the future (determined by, or ascertainable from, the agreements but in any case not later than when the goods are fully paid for),
it is then in either case a supply of the goods.
2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3 The supply of any form of power, heat, refrigeration or other cooling, or ventilation is a supply of goods.
4 The grant, assignment or surrender of a major interest in land is a supply of goods.
5 (1) Subject to sub-paragraph (2) below, where goods forming part of the assets of a business are transferred or disposed of by or under the directions of the person carrying on the business so as no longer to form part of those assets, whether or not for a consideration, that is a supply by him of goods.
(2) Sub-paragraph (1) above does not apply where the transfer or disposal is—
(a) a business gift the cost of which, together with the cost of any other business gifts made to the same person in the same year, was not more than £50.
(b) the provision to a person, otherwise than for a consideration, of a sample of goods.
(c) a qualifying charitable donation.
(2ZA) In sub-paragraph (2) above—
“business gift” means a gift of goods that is made in the course or furtherance of the business in question;
“cost”, in relation to a gift of goods, means the cost to the donor of acquiring or, as the case may be, producing the goods;
“qualifying charitable donation” has the meaning given in paragraph 5A;
“the same year”, in relation to a gift, means any period of twelve months that includes the day on which the gift is made.
(2A) For the purposes of determining the cost to the donor of acquiring or producing goods of which he has made a gift, where—
(a) the acquisition by the donor of the goods, or anything comprised in the goods, was by means of a transfer of a business, or a part of a business, as a going concern,
(b) the assets transferred by that transfer included those goods or that thing, and
(c) the transfer of those assets is one falling by virtue of an order under section 5(3) (or under an enactment re-enacted in section 5(3)) to be treated as neither a supply of goods nor a supply of services,
the donor and his predecessor or, as the case may be, all of his predecessors shall be treated as if they were the same person.
(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4) Where by or under the directions of a person carrying on a business goods held or used for the purposes of the business are put to any private use or are used, or made available to any person for use, for any purpose other than a purpose of the business, whether or not for a consideration, that is a supply of services.
(4A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4A) Sub-paragraph (4) does not apply (despite paragraph 9(1)) to—
(a) any interest in land,
(b) any building or part of a building,
(c) any civil engineering work or part of such a work,
(d) any goods incorporated or to be incorporated in a building or civil engineering work (whether by being installed as fixtures or fittings or otherwise),
(e) any ship, boat or other vessel, or
(f) any aircraft.
(5) Neither sub-paragraph (1) nor sub-paragraph (4) above shall require anything which a person carrying on a business does otherwise than for a consideration in relation to any goods to be treated as a supply except in a case where that person or any of his predecessors is a person who (disregarding this paragraph) has or will become entitled—
(a) under sections 25 and 26, to credit for the whole or any part of the VAT on the supply... or importation of those goods or of anything comprised in them; or
(b) under a scheme embodied in regulations made under section 39, to a repayment of VAT on the supply or importation of those goods or of anything comprised in them.
(5A) In relation to any goods or anything comprised in any goods, a person is the predecessor of another for the purposes of this paragraph if—
(a) that other person is a person to whom he has transferred assets of his business by a transfer of that business, or a part of it, as a going concern;
(b) those assets consisted of or included those goods or that thing; and
(c) the transfer of the assets is one falling by virtue of an order under section 5(3) (or under an enactment re-enacted in section 5(3)) to be treated as neither a supply of goods nor a supply of services;
and references in this paragraph to a person’s predecessors include references to the predecessors of his predecessors through any number of transfers.
(6) Anything which is a supply of goods or services by virtue of sub-paragraph (1) or (4) above is to be treated as made in the course or furtherance of the business (if it would not otherwise be so treated); and in the case of a business carried on by an individual—
(a) sub-paragraph (1) above applies to any transfer or disposition of goods in favour of himself personally; and
(b) sub-paragraph (4) above applies to goods used, or made available for use, by himself personally.
(7) The Treasury may by order substitute for the sum for the time being specified in sub-paragraph (2)(a) above such sum, not being less than £10, as they think fit.
5A (1) In paragraph 5 “qualifying charitable donation” means (subject to sub-paragraphs (6) and (7)) a donation of an item to a charity where—
(a) the item’s value does not exceed the applicable limit, and
(b) the donation is made—
(i) for use by the charity otherwise than in the course or furtherance of a business, or
(ii) for onward donation by the charity (whether or not to another charity).
(2) In sub-paragraph (1)(a) “the applicable limit” means—
(a) £200 where the item donated is any of the following—
(i) a household appliance;
(ii) furniture;
(iii) flooring (including carpets and rugs);
(iv) a computer;
(v) a mobile phone;
(vi) a tablet;
(b) £100 in any other case.
(3) For the purposes of sub-paragraph (1)(a) an item’s value is taken to be the lower of—
(a) the cost to the donor of acquiring or, as the case may be, producing the item, and
(b) such consideration in money as would be payable by the donor if the donor were, at the time of the donation, to purchase—
(i) an item identical in every respect (including age and condition) to the item concerned, or
(ii) where such consideration cannot be determined on the basis described in sub-paragraph (i), an item similar to and of the same age and condition as the item concerned;
but where the amount described in paragraph (a) is not known, the item’s value is taken to be the amount described in paragraph (b).
(4) Paragraph 5(2A) and (5A) (goods acquired by predecessor businesses) applies for the purposes of sub-paragraph (3).
(5) For the purposes of sub-paragraph (3) the amount of consideration in money that would be payable by the donor if they were to purchase any goods is taken to be the amount that would be so payable by the donor after the deduction of any amount included in the purchase price in respect of VAT on the supply of the goods to the donor.
(6) A donation is not a qualifying charitable donation if the item donated is any of the following—
(a) a tobacco product within the meaning of the Tobacco Products Duty Act 1979;
(b) a vaping product within the meaning of Part 4 of the Finance Act 2026;
(c) an alcohol product within the meaning of Part 2 of the Finance (No.2) Act 2023, other than one belonging to a class or description on which alcohol duty is not charged under that Part of that Act.
(7) A donation is not a qualifying charitable donation if (disregarding this paragraph) it is a zero-rated supply.
(8) The Treasury may by order amend this paragraph for the purpose of varying the definition of “the applicable limit” in sub-paragraph (2).
6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7 Where in the case of a business carried on by a taxable person goods forming part of the assets of the business are, under any power exercisable by another person, sold by the other in or towards satisfaction of a debt owed by the taxable person, they shall be deemed to be supplied by the taxable person in the course or furtherance of his business.
8 (1) Where a person ceases to be a taxable person, any goods then forming part of the assets of a business carried on by him shall be deemed to be supplied by him in the course or furtherance of his business immediately before he ceases to be a taxable person, unless—
(a) the business is transferred as a going concern to another taxable person; or
(b) the business is carried on by another person who, under regulations made under section 46(4), is treated as a taxable person; or
(c) the VAT on the deemed supply would not be more than £1,000.
(2) This paragraph does not apply to any goods in the case of which the taxable person can show to the satisfaction of the Commissioners—
(a) that no credit for input tax has been allowed to him in respect of the supply of the goods or their importation into the United Kingdom;
(b) that the goods did not become his as part of the assets of a business , or part of a business, which was transferred to him as a going concern by another taxable person; and
(c) that he has not obtained relief in respect of the goods under section 4 of the Finance Act 1973.
(3) This paragraph does not apply where a person ceases to be a taxable person in consequence of having been certified under section 54.
(4) The Treasury may by order increase or further increase the sum specified in sub-paragraph (1)(c) above.
9 (1) Subject to sub-paragraphs (2) and (3) below, paragraphs 5 to 8 above have effect in relation to land forming part of the assets of, or held or used for the purposes of, a business as if it were goods forming part of the assets of, or held or used for the purposes of, a business.
(2) In the application of those paragraphs by virtue of sub-paragraph (1) above, references to transfer, disposition or sale shall have effect as references to the grant or assignment of any interest in, right over or licence to occupy the land concerned.
(3) Except in relation to—
(a) the grant or assignment of a major interest; or
(b) a grant or assignment otherwise than for a consideration,
in the application of paragraph 5(1) above by virtue of sub-paragraph (1) above the reference to a supply of goods shall have effect as a reference to a supply of services.
(4) In this paragraph “grant” includes surrender.
SCHEDULE 4A Place of supply of services: special rules
Section 7A
Part 1 General exceptions
Services relating to land
1 (1) A supply of services to which this paragraph applies is to be treated as made in the country in which the land in connection with which the supply is made is situated.
(2) This paragraph applies to—
(a) the grant, assignment or surrender of any interest in or right over land,
(b) the grant, assignment or surrender of a personal right to call for or be granted any interest in or right over land,
(c) the grant, assignment or surrender of a licence to occupy land or any other contractual right exercisable over or in relation to land (including the provision of holiday accommodation, seasonal pitches for caravans and facilities at caravan parks for persons for whom such pitches are provided and pitches for tents and camping facilities),
(d) the provision in an hotel, inn, boarding house or similar establishment of sleeping accommodation or of accommodation in rooms which are provided in conjunction with sleeping accommodation or for the purpose of a supply of catering,
(e) any works of construction, demolition, conversion, reconstruction, alteration, enlargement, repair or maintenance of a building or civil engineering work, and
(f) services such as are supplied by estate agents, auctioneers, architects, surveyors, engineers and others involved in matters relating to land.
(3) In sub-paragraph (2)(c) “holiday accommodation” includes any accommodation in a building, hut (including a beach hut or chalet), caravan, houseboat or tent which is advertised or held out as holiday accommodation or as suitable for holiday or leisure use.
(4) In sub-paragraph (2)(d) “similar establishment” includes premises in which there is provided furnished sleeping accommodation, whether with or without the provision of board or facilities for the preparation of food, which are used by, or held out as being suitable for use by, visitors or travellers.
Passenger transport
2 (1) A supply of services consisting of the transportation of passengers (or of any luggage or motor vehicles accompanying passengers) is to be treated as made in the country in which the transportation takes place, and (in a case where it takes place in more than one country) in proportion to the distances covered in each.
(2) For the purposes of sub-paragraph (1) transportation which takes place partly outside the territorial jurisdiction of a country is to be treated as taking place wholly in the country if—
(a) it takes place in the course of a journey between two points in the country (whether or not as part of a longer journey involving travel to or from another country), and
(b) the means of transport used does not (except in an emergency or involuntarily) stop, put in or land in another country in the course of the journey between those two points.
(3) For the purposes of sub-paragraph (1) a pleasure cruise is to be regarded as the transportation of passengers (so that services provided as part of a pleasure cruise are to be treated as supplied in the same place as the transportation of the passengers).
(4) In sub-paragraph (3) “pleasure cruise” includes a cruise wholly or partly for education or training.
Hiring of means of transport
3 (1) A supply of services consisting of the short-term hiring of a means of transport is to be treated as made in the country in which the means of transport is actually put at the disposal of the person by whom it is hired.
But this is subject to sub-paragraphs (3) and (4).
(2) For the purposes of this Schedule the hiring of a means of transport is “short-term” if it is hired for a continuous period not exceeding—
(a) if the means of transport is a vessel, 90 days, and
(b) otherwise, 30 days.
(3) Where—
(a) a supply of services consisting of the hiring of a means of transport would otherwise be treated as made in the United Kingdom, and
(b) the services are to any extent effectively used and enjoyed outside the United Kingdom,
the supply is to be treated to that extent as made outside the United Kingdom.
(4) Where—
(a) a supply of services consisting of the hiring of a means of transport would otherwise be treated as made outside the United Kingdom, and
(b) the services are to any extent effectively used and enjoyed in the United Kingdom,
the supply is to be treated to that extent as made in the United Kingdom.
Cultural, educational and entertainment services etc
4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Restaurant and catering services...
5 A supply of restaurant or catering services is to be treated as made in the country in which the services are physically carried out.
...
6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Hiring of goods
7 (1) Where—
(a) a supply of services consisting of the hiring of any goods other than a means of transport would otherwise be treated as made in the United Kingdom, and
(b) the services are to any extent effectively used and enjoyed outside the United Kingdom,
the supply is to be treated to that extent as made outside the United Kingdom.
(2) Where—
(a) a supply of services consisting of the hiring of any goods other than a means of transport would otherwise be treated as made outside the United Kingdom, and
(b) the services are to any extent effectively used and enjoyed in the United Kingdom,
the supply is to be treated to that extent as made in the United Kingdom.
...broadcasting services
8 (1) This paragraph applies to a supply of services consisting of the provision of—
(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b) radio or television broadcasting services.
(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3) Where—
(a) a supply of services to which this paragraph applies would otherwise be treated as made in the United Kingdom, and
(b) the services are to any extent effectively used and enjoyed outside the United Kingdom,
the supply is to be treated to that extent as made outside the United Kingdom.
(4) Where—
(a) a supply of services to which this paragraph applies would otherwise be treated as made outside the United Kingdom, and
(b) the services are to any extent effectively used and enjoyed in the United Kingdom,
the supply is to be treated to that extent as made in the United Kingdom.
Part 2 Exceptions relating to supplies made to relevant business person
Electronically-supplied services
9 (1) Where—
(a) a supply of services consisting of the provision of electronically supplied services to a relevant business person would otherwise be treated as made in the United Kingdom, and
(b) the services are to any extent effectively used and enjoyed outside the United Kingdom,
the supply is to be treated to that extent as made outside the United Kingdom.
(2) Where—
(a) a supply of services consisting of the provision of electronically supplied services to a relevant business person would otherwise be treated as made outside the United Kingdom, and
(b) the services are to any extent effectively used and enjoyed in the United Kingdom,
the supply is to be treated to that extent as made in the United Kingdom.
(3) Examples of what are electronically supplied services for the purposes of this Schedule include—
(a) website supply, web-hosting and distance maintenance of programmes and equipment,
(b) the supply of software and the updating of software,
(c) the supply of images, text and information, and the making available of databases,
(d) the supply of music, films and games (including games of chance and gambling games),
(e) the supply of political, cultural, artistic, sporting, scientific, educational or entertainment broadcasts (including broadcasts of events), and
(f) the supply of distance teaching.
(4) But where the supplier of a service and the supplier's customer communicate via electronic mail, this does not of itself mean that the service provided is an electronically supplied service for the purposes of this Schedule.
Admission to cultural, educational and entertainment activities etc
9A (1) A supply to a relevant business person of services to which this paragraph applies is to be treated as made in the country in which the events in question actually take place.
(2) This paragraph applies to the provision of—
(a) services in respect of admission to cultural, artistic, sporting, scientific, educational, entertainment or similar events (including fairs and exhibitions), and
(b) ancillary services relating to admission to such events.
Transport of goods
9B Where—
(a) a supply of services to a relevant business person consisting of the transportation of goods would otherwise be treated as made in the United Kingdom, and
(b) the transportation takes place wholly outside the United Kingdom,
the supply is to be treated as made outside the United Kingdom.
Ancillary transport services
9C (1) Where—
(a) a supply of services to a relevant business person consisting of ancillary transport services would otherwise be treated as made in the United Kingdom, and
(b) the services are physically performed wholly outside the United Kingdom,
the supply is to be treated as made outside the United Kingdom.
(2) In sub-paragraph (1)(a) “ancillary transport services” means loading, unloading, handling and similar activities.
Repair services: contracts of insurance
9D. (1) This paragraph applies to a supply of services consisting of the repair of tangible movable property where—
(a) the supply is pursuant to a claim made under a contract of insurance, and
(b) the supply is made to a relevant business person who is not the person insured.
(2) Where—
(a) a supply of services to which this paragraph applies would otherwise be treated as made in the United Kingdom, and
(b) the services are effectively used and enjoyed outside the United Kingdom,
the supply is to be treated as made outside the United Kingdom.
(3) Where—
(a) a supply of services to which this paragraph applies would otherwise be treated as made outside the United Kingdom, and
(b) the services are effectively used and enjoyed in the United Kingdom,
the supply is to be treated as made in the United Kingdom.
Telecommunication services
9E. (1) This paragraph applies to a supply of services to a relevant business person consisting of the provision of telecommunication services.
(2) In this Schedule “telecommunication services” means services relating to the transmission, emission or reception of signals, writing, images and sounds or information of any nature by wire, radio, optical or other electromagnetic systems, including—
(a) the related transfer or assignment of the right to use capacity for such transmission, emission or reception, and
(b) the provision of access to global information networks.
(3) Where—
(a) a supply of services to which this paragraph applies would otherwise be treated as made in the United Kingdom, and
(b) the services are to any extent effectively used and enjoyed outside the United Kingdom,
the supply is to be treated to that extent as made outside the United Kingdom.
(4) Where—
(a) a supply of services to which this paragraph applies would otherwise be treated as made outside the United Kingdom, and
(b) the services are to any extent effectively used and enjoyed in the United Kingdom,
the supply is to be treated to that extent as made in the United Kingdom.
Part 3 Exceptions relating to supplies not made to relevant business person
Intermediaries
10 (1) A supply of services to which this paragraph applies is to be treated as made in the same country as the supply to which it relates.
(2) This paragraph applies to a supply to a person who is not a relevant business person consisting of the making of arrangements for a supply by or to another person or of any other activity intended to facilitate the making of such a supply.
Transport of goods...
11 (1) A supply of services to a person who is not a relevant business person consisting of the transportation of goods is to be treated as made in the country in which the transportation takes place, and (in a case where it takes place in more than one country) in proportion to the distances covered in each.
(2) For the purposes of sub-paragraph (1) transportation which takes place partly outside the territorial jurisdiction of a country is to be treated as taking place wholly in the country if—
(a) it takes place in the course of a journey between two points in the country (whether or not as part of a longer journey involving travel to or from another country), and
(b) the means of transport used does not (except in an emergency or involuntarily) stop, put in or land in another country in the course of the journey between those two points.
(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
...
12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ancillary transport services
13 (1) A supply to a person who is not a relevant business person of ancillary transport services is to be treated as made where the services are physically performed.
(2) “Ancillary transport services” means loading, unloading handling and similar activities.
Long-term hiring of means of transport
13A (1) A supply to a person who is not a relevant business person (“the recipient”) of services consisting of the long-term hiring of a means of transport is to be treated as made in the country in which the recipient belongs.
But this is subject to sub-paragraph (2) and paragraph 3(3) and (4).
(2) A supply to a person who is not a relevant business person (“the recipient”) of services consisting of the long-term hiring of a pleasure boat which is actually put at the disposal of the recipient at the supplier's business establishment, or some other fixed establishment of the supplier, is to be treated as made in the country where the pleasure boat is actually put at the disposal of the recipient.
(3) For the purposes of this Schedule, the hiring of a means of transport is “long-term” if it is not short-term (as to the meaning of which see paragraph 3(2)).
Valuation services etc
14 A supply to a person who is not a relevant business person of services consisting of the valuation of, or carrying out of work on, goods is to be treated as made where the services are physically performed.
Cultural, educational and entertainment services etc
14A (1) A supply to a person who is not a relevant business person of services to which this paragraph applies is to be treated as made in the country in which the activities concerned actually take place.
(2) This paragraph applies to the provision of—
(a) services relating to cultural, artistic, sporting, scientific, educational, entertainment or similar activities (including fairs and exhibitions), and
(b) ancillary services relating to such activities, including services of organisers of such activities.
Electronically supplied, telecommunication and broadcasting services
15 (1) A supply to a person who is not a relevant business person of services to which this paragraph applies is to be treated as made in the country in which the recipient belongs (but see ... paragraph 8).
(2) This paragraph applies to-
(a) electronically supplied services (as to the meaning of which see paragraph 9(3) and (4)),
(b) telecommunication services (as to the meaning of which see paragraph 9E(2), and
(c) radio and television broadcasting services.
(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other services provided to recipient belonging outside United Kingdom and the Isle of Man
16 (1) A supply consisting of the provision to a person (“the recipient”) who—
(a) is not a relevant business person, and
(b) belongs in a country other than the United Kingdom or the Isle of Man,
of services to which this paragraph applies is to be treated as made in the country in which the recipient belongs.
(2) This paragraph applies to—
(a) transfers and assignments of copyright, patents, licences, trademarks and similar rights,
(b) the acceptance of any obligation to refrain from pursuing or exercising (in whole or in part) any business activity or any rights within paragraph (a),
(c) advertising services,
(d) services of consultants, engineers, consultancy bureaux, lawyers, accountants, and similar services, data processing and provision of information, other than any services relating to land,
(e) banking, financial and insurance services (including reinsurance), other than the provision of safe deposit facilities,
(f) the provision of access to, or transmission or distribution through—
(i) a natural gas system in the United Kingdom or any network connected to a natural gas system in the United Kingdom, or
(ii) an electricity system, or
(iii) a network through which heat or cooling is supplied,
and the provision of other directly linked services,
(g) the supply of staff, and
(h) the letting on hire of goods other than means of transport,
(i) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(j) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(k) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
SCHEDULE 5A Goods Eligible to be Fiscally Warehoused
Section 18B.
Description of goods | customs tariff (within the meaning of TCTA 2018) code
Tin | 8001
Copper | 7402
7403
7405
7408
Zinc | 7901
Nickel | 7502
Aluminium | 7601
Lead | 7801
Indium | ex 811291
ex 811299
Cereals | 1001 to 1005
1006: unprocessed rice only
1007 to 1008
Oil seeds and oleaginous fruit | 1201 to 1207
Coconuts, Brazil nuts and cashew nuts | 801
Other nuts | 502
Olives | 71120
Grains and seeds (including soya beans) | 1201 to 1207
Coffee, not roasted | 901 11 0
901 12 0
Tea | 902
Cocoa beans, whole or broken, raw or roasted | 1801
Raw sugar | 1701 11
1701 12
Rubber, in primary forms or in plates, sheets or strip | 4001
4002
Wool | 5101
Chemicals in bulk | Chapters 28 and 29
Mineral oils (including propane and butane; also including crude petroleum oils) | 2709
2710
2711 12
2711 13
Silver | 7106
Platinum (palladium, rhodium) | 7110 11 0
7110 21 0
7110 31 0
Potatoes | 701
Vegetable oils and fats and their fractions, whether or not refined, but not chemically modified | 1507 to 1515
Section 19.
Part 1 Valuation of supplies of fuel for private use
Option for valuation on flat-rate basis
A1 (1) This paragraph applies if, in a prescribed accounting period, supplies of goods by a taxable person (“P”) arise by virtue of paragraph 5(1) of Schedule 4 (but otherwise than for a consideration) where road fuel which is or has previously been supplied to or imported or manufactured by P in the course of P's business is provided for, or appropriated to, private use.
(2) For this purpose “road fuel is provided for, or appropriated to, private use” if—
(a) it is provided or to be provided by P—
(i) to an individual for private use in the individual's own car or a car allocated to the individual, and
(ii) by reason of the individual's employment,
(b) where P is an individual, it is appropriated or to be appropriated by P for private use in P's own car, or
(c) where P is a partnership, it is provided or to be provided to any of the individual partners for private use in that partner's own car.
(3) P may opt for all supplies of goods within sub-paragraph (1) made by P in the prescribed accounting period to be valued on the flat-rate basis.
(4) On the flat-rate basis, the value of all supplies made to any one individual in respect of any one car is that determined in accordance with an order under paragraph B1.
B1 (1) The Treasury must, by order, make provision about the valuation of supplies on the flat-rate basis.
(2) In particular, an order under this paragraph must—
(a) set out a table (“the base valuation table”) by reference to which the value of supplies is to be determined until such time as the base valuation table is replaced under paragraph (b),
(b) provide that at regular intervals—
(i) the amounts specified in the base valuation table are to be revalorised by the Commissioners in accordance with the order, and
(ii) a table (an “updated valuation table”) containing the revalorised amounts is to take effect (and replace any existing table) in accordance with the order, and
(c) require the Commissioners to publish any updated valuation table before it takes effect, together with a statement specifying the date from which it has effect.
(3) An order under this paragraph may provide for the base valuation table and any updated valuation table to be implemented or supplemented by either or both of the following—
(a) rules set out in the order which explain how the value is to be determined by reference to any table;
(b) notes set out in the order with respect to the interpretation or application of any table or any rules or notes.
(4) Rules or notes may make different provision for different circumstances or cases.
Interpretation
C1 (1) For the purposes of this Part of this Schedule—
(a) any reference to an individual's own car is to be construed as including any car of which for the time being the individual has the use, other than a car allocated to the individual,
(b) subject to sub-paragraph (2), a car is at any time to be taken to be allocated to an individual if at that time it is made available (without any transfer of the property in it) either to the individual or to any other person, and is so made available by reason of the individual's employment and for private use, and
(c) fuel provided by an employer to an employee and fuel provided to any person for private use in a car which, by virtue of paragraph (b), is for the time being taken to be allocated to the employee is to be taken to be provided to the employee by reason of the employee's employment.
(2) For the purposes of this Part of this Schedule, in any prescribed accounting period a car is not regarded as allocated to an individual by reason of the individual's employment if—
(a) in that period it was made available to, and actually used by, more than one of the employees of one or more employers and, in the case of each of them, it—
(i) was made available to that employee by reason of the employment, but
(ii) was not in that period ordinarily used by any one of them to the exclusion of the others,
(b) in the case of each of the employees, any private use of the car made by the employee in that period was merely incidental to the employee's other use of it in that period, and
(c) in that period it was not normally kept overnight on or in the vicinity of any residential premises where any of the employees was residing, except while being kept overnight on premises occupied by the person making the car available to them.
(3) In this Part of this Schedule—
“employment” includes any office, and related expressions are to be construed accordingly;
“car” means a motor car as defined by paragraph 1A(4) and (5);
“road fuel” means hydrocarbon oil as defined by the Hydrocarbon Oil Duties Act 1979 (see section 1(2) of that Act) on which duty has been or is required to be paid in accordance with that Act.
(4) The Treasury may, by order, amend the definition of “road fuel” in sub-paragraph (3).
Part 2 Other Provisions
1 (1) Where—
(a) the value of a supply made by a taxable person for a consideration in money is (apart from this paragraph) less than its open market value, and
(b) the person making the supply and the person to whom it is made are connected, and
(c) if the supply is a taxable supply, the person to whom the supply is made is not entitled under sections 25 and 26 to credit for all the VAT on the supply,
the Commissioners may direct that the value of the supply shall be taken to be its open market value.
(2) A direction under this paragraph shall be given by notice in writing to the person making the supply, but no direction may be given more than 3 years after the time of the supply.
(3) A direction given to a person under this paragraph in respect of a supply made by him may include a direction that the value of any supply—
(a) which is made by him after the giving of the notice, or after such later date as may be specified in the notice, and
(b) as to which the conditions in paragraphs (a) to (c) of sub-paragraph (1) above are satisfied,
shall be taken to be its open market value.
(4) For the purposes of this paragraph any question whether a person is connected with another shall be determined in accordance with section 1122 of the Corporation Tax Act 2010.
(5) This paragraph does not apply to a supply to which paragraph 8A or 10 below applies.
1A (1) Where—
(a) the value of a supply made by a taxable person for a consideration is (apart from this sub-paragraph) less than its open market value,
(b) the taxable person is a motor manufacturer or motor dealer,
(c) the person to whom the supply is made is—
(i) an employee of the taxable person,
(ii) a person who, under the terms of his employment, provides services to the taxable person, or
(iii) a relative of a person falling within sub-paragraph (i) or (ii) above,
(d) the supply is a supply of services by virtue of sub-paragraph (4) of paragraph 5 of Schedule 4 (business goods put to private use etc),
(e) the goods mentioned in that sub-paragraph consist of a motor car (whether or not any particular motor car) that forms part of the stock in trade of the taxable person, and
(f) the supply is not one to which paragraph 1 above applies,
the Commissioners may direct that the value of the supply shall be taken to be its open market value.
(2) A direction under this paragraph shall be given by notice in writing to the person making the supply, but no direction may be given more than 3 years after the time of the supply.
(3) A direction given to a person under this paragraph in respect of a supply made by him may include a direction that the value of any supply—
(a) which is made by him after the giving of the notice, or after such later date as may be specified in the notice, and
(b) as to which the conditions in paragraphs (a) to (f) of sub-paragraph (1) above are satisfied,
shall be taken to be its open market value.
(4) In this paragraph—
“motor car” means any motor vehicle of a kind normally used on public roads which has three or more wheels and either—
is constructed or adapted solely or mainly for the carriage of passengers, or
has to the rear of the driver’s seat roofed accommodation which is fitted with side windows or which is constructed or adapted for the fitting of side windows,
but does not include any vehicle excluded by sub-paragraph (5) below;
“motor dealer” means a person whose business consists in whole or in part of obtaining supplies of, ... or importing, new or second-hand motor cars for resale with a view to making an overall profit on the sale of them (whether or not a profit is made on each sale);
“motor manufacturer” means a person whose business consists in whole or in part of producing motor cars including producing motor cars by conversion of a vehicle (whether a motor car or not);
“relative” means husband, wife, brother, sister, ancestor or lineal descendant;
“stock in trade” means new or second-hand motor cars (other than second-hand motor cars which are not qualifying motor cars within sub-paragraph (6) below) which are—
produced by a motor manufacturer, or supplied to or imported by a motor dealer, for the purpose of resale, and
intended to be sold within 12 months of their production, supply or importation (as the case may require),
and such motor cars shall not cease to be stock in trade where they are temporarily put to a use in the motor manufacturer’s or, as the case may be, the motor dealer’s business which involves making them available for private use.
(5) The vehicles excluded by this sub-paragraph are—
(a) vehicles capable of accommodating only one person;
(b) vehicles which meet the requirements of Schedule 6 to the Road Vehicles (Construction and Use) Regulations 1986 and are capable of carrying twelve or more seated persons;
(c) vehicles of not less than three tonnes unladen weight (as defined in the Table to regulation 3(2) of the Road Vehicles (Construction and Use) Regulations 1986);
(d) vehicles constructed to carry a payload (the difference between—
(i) a vehicle’s kerb weight (as defined in the Table to regulation 3(2) of the Road Vehicles (Construction and Use) Regulations 1986), and
(ii) its maximum gross weight (as defined in that Table)),
of one tonne or more;
(e) caravans, ambulances and prison vans;
(f) vehicles constructed for a special purpose other than the carriage of persons and having no other accommodation for carrying persons than such as is incidental to that purpose.
(6) For the purposes of this paragraph a motor car is a “qualifying motor car”if—
(a) it has never been supplied... or imported in circumstances in which the VAT on that supply... or importation was wholly excluded from credit as input tax by virtue of an order under section 25(7) (as at 17th March 2004 see article 7 of the Value Added Tax (Input Tax) Order 1992); or
(b) a taxable person has elected under such an order for it to be treated as such.
(7) The Treasury may by order amend any of the definitions in this paragraph.
2 Where—
(a) the whole or part of a business carried on by a taxable person consists in supplying to a number of persons goods to be sold, whether by them or others, by retail, and
(b) those persons are not taxable persons,
the Commissioners may by notice in writing to the taxable person direct that the value of any such supply by him after the giving of the notice or after such later date as may be specified in the notice shall be taken to be its open market value on a sale by retail.
2A (1) This paragraph applies if—
(a) a taxable person (“P”) makes a supply of road fuel for a consideration,
(b) the recipient of the supply is—
(i) connected with P, or
(ii) an employee or partner of P or a person who is connected with such an employee or partner,
(c) the value of the supply would (in the absence of this paragraph) be less than its open market value, and
(d) the recipient of the supply is not entitled to credit for the whole of the input tax arising on the supply.
(2) The value of the supply is to be taken to be an amount equal to its open market value.
(3) For the purposes of this paragraph—
(a) “road fuel” means hydrocarbon oil as defined by the Hydrocarbon Oil Duties Act 1979 (see section 1(2) of that Act) on which duty has been or is required to be paid in accordance with that Act, and
(b) any question whether a person is connected with another is to be determined in accordance with section 1122 of the Corporation Tax Act 2010.
(4) The Treasury may, by order, amend the definition of “road fuel” in sub-paragraph (3)(a).
3 (1) Where—
(a) any goods whose supply involves their removal to the United Kingdom—
(i) are charged in connection with their removal to the United Kingdom with a duty of excise; or
(ii) on that removal are subject, in accordance with any provision for the time being having effect for transitional purposes in connection with the accession of any State to the European Union, to any ... agricultural levy of the European Union; or
(b) the time of supply of any dutiable goods, or of any goods which comprise a mixture of dutiable goods and other goods, is determined under section 18(4) to be the duty point,
then the value of the supply shall be taken for the purposes of this Act to be the sum of its value apart from this paragraph and the amount, so far as not already included in that value, of the duty or, as the case may be, agricultural levy which has been or is to be paid in respect of the goods.
(2) In this paragraph “dutiable goods” and “duty point” have the same meanings as in section 18.
4 (1) Sub-paragraph (2) applies where—
(a) goods or services are supplied for a consideration which is a price in money,
(b) the terms on which those goods or services are so supplied allow a discount for prompt payment of that price,
(c) payment of that price is not made by instalments, and
(d) payment of that price is made in accordance with those terms so that the discount is realised in relation to that payment.
(2) For the purposes of section 19 (value of supply of goods or services) the consideration is the discounted price paid.
5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6 (1) Where there is a supply of goods by virtue of—
(a) a Treasury order under section 5(5); or
(b) paragraph 5(1) or 6 of Schedule 4 but otherwise than for a consideration); or
(c) paragraph 8 of that Schedule; ...
(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
then, except where the person making the supply opts under paragraph A1(3) above for valuation on the flat-rate basis or paragraph 10 below applies, the value of the supply shall be determined as follows.
(2) The value of the supply shall be taken to be—
(a) such consideration in money as would be payable by the person making the supply if he were, at the time of the supply, to purchase goods identical in every respect (including age and condition) to the goods concerned; or
(b) where the value cannot be ascertained in accordance with paragraph (a) above, such consideration in money as would be payable by that person if he were, at that time, to purchase goods similar to, and of the same age and condition as, the goods concerned; or
(c) where the value can be ascertained in accordance with neither paragraph (a) nor paragraph (b) above, the cost of producing the goods concerned if they were produced at that time.
(3) For the purposes of sub-paragraph (2) above the amount of consideration in money that would be payable by any person if he were to purchase any goods shall be taken to be the amount that would be so payable after the deduction of any amount included in the purchase price in respect of VAT on the supply of the goods to that person.
7 (1) Where there is a supply of services by virtue of—
(a) a Treasury order under section 5(4); or
(b) paragraph 5(4) of Schedule 4 (but otherwise than for a consideration),
the value of the supply shall be taken to be the full cost to the taxable person of providing the services except where paragraph 10 below applies.
(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.
8 Where any supply of services is treated by virtue of section 8 , or any supply of goods is treated by virtue of section 9A, as made by the person by whom they are received, the value of the supply shall be taken—
(a) in a case where the consideration for which the services or goods were in fact supplied to him was a consideration in money, to be such amount as is equal to that consideration; and
(b) in a case where that consideration did not consist or not wholly consist of money, to be such amount in money as is equivalent to that consideration.
8A (1) This paragraph applies where—
(a) a supply (“the intra-group supply”) made by a member of a group (“the supplier”) to another member of the group is, by virtue of section 43(2A), excluded from the supplies disregarded under section 43(1)(a), and
(b) the representative member of the group satisfies the Commissioners as to the value of each bought-in supply.
(2) “Bought-in supply”, in relation to the intra-group supply, means a supply of services to the supplier to which section 43(2A)(c) to (e) refers, so far as that supply is used by the supplier for making the intra-group supply.
(3) The value of the intra-group supply shall be taken to be the total of the relevant amounts in relation to the bought-in supplies.
(4) The relevant amount in relation to a bought-in supply is the value of the bought-in supply, unless a direction is made under sub-paragraph (5).
(5) If the value of a bought-in supply is less than its open market value, the Commissioners may direct that the relevant amount in relation to that supply is its open market value.
(6) A direction under this paragraph must be given by notice in writing to the representative member, but no direction may be given more than 3 years after the time of the intra-group supply.
(7) The Treasury may by order vary the provision made by this Schedule about the value of supplies of the kind mentioned in sub-paragraph (1)(a).
(8) An order under sub-paragraph (7) may include incidental, supplemental, consequential or transitional provision (including provision amending section 43 or 83).
9 (1) This paragraph applies where a supply of services consists in the provision of accommodation falling within paragraph (d) of Item 1 of Group 1 in Schedule 9 and—
(a) that provision is made to an individual for a period exceeding 4 weeks; and
(b) throughout that period the accommodation is provided for the use of the individual either alone or together with one or more other persons who occupy the accommodation with him otherwise than at their own expense (whether incurred directly or indirectly).
(2) Where this paragraph applies—
(a) the value of so much of the supply as is in excess of 4 weeks shall be taken to be reduced to such part thereof as is attributable to facilities other than the right to occupy the accommodation; and
(b) that part shall be taken to be not less than 20 per cent.
10 (1) This paragraph applies to a supply of goods or services, whether or not for a consideration, which is made by an employer and consists of—
(a) the provision in the course of catering of food or beverages to his employees, or
(b) the provision of accommodation for his employees in a hotel, inn, boarding house or similar establishment.
(2) The value of a supply to which this paragraph applies shall be taken to be nil unless the supply is for a consideration consisting wholly or partly of money, and in that case its value shall be determined without regard to any consideration other than money.
11 (1) Subject to the following provisions of this paragraph, where—
(a) there is a supply of goods or services; and
(b) any sum relevant for determining the value of the supply is expressed in a currency other than sterling,
then, for the purpose of valuing the supply, that sum is to be converted into sterling at the market rate which, on the relevant day, would apply in the United Kingdom to a purchase with sterling by the person to whom they are supplied of that sum in the currency in question.
(2) Where the Commissioners have published a notice which, for the purposes of this paragraph, specifies—
(a) rates of exchange; or
(b) methods of determining rates of exchange,
a rate specified in or determined in accordance with the notice, as for the time being in force, shall apply (instead of the rate for which sub-paragraph (1) above provides) in the case of any supply by a person who opts, in such manner as may be allowed by the Commissioners, for the use of that rate in relation to that supply.
(3) An option for the purposes of sub-paragraph (2) above for the use of a particular rate or method of determining a rate—
(a) shall not be exercised by any person except in relation to all such supplies by him as are of a particular description or after a particular date; and
(b) shall not be withdrawn or varied except with the consent of the Commissioners and in such manner as they may require.
(4) In specifying a method of determining a rate of exchange a notice published by the Commissioners under sub-paragraph (2) above may allow a person to apply to the Commissioners for the use, for the purpose of valuing some or all of his supplies, of a rate of exchange which is different from any which would otherwise apply.
(5) On an application made in accordance with provision contained in a notice under sub-paragraph (4) above, the Commissioners may authorise the use with respect to the applicant of such a rate of exchange, in such circumstances, in relation to such supplies and subject to such conditions as they think fit.
(6) A notice published by the Commissioners for the purposes of this paragraph may be withdrawn or varied by a subsequent notice published by the Commissioners.
(7) The time by reference to which the appropriate rate of exchange is to be determined for the purpose of valuing any supply is the time when the supply takes place; and, accordingly, the day on which it takes place is the relevant day for the purposes of sub-paragraph (1) above.
11A (1) Sub-paragraph (2) applies to goods that—
(a) fall within subsection (5) of section 21 (works of art etc), and
(b) are treated as supplied in the United Kingdom as a result of section 7(5B) (importation of consignments with an intrinsic value not exceeding £135).
(2) The value of a supply of goods to which this sub-paragraph applies is to be taken to be an amount equal to 25% of the amount that, apart from this sub-paragraph, would be its value for the purposes of this Act.
(3) An order under section 2(2) may contain provision making such alteration of the percentage for the time being specified in sub-paragraph (2) as the Treasury consider appropriate in consequence of any increase or decrease by that order of the rate of VAT.
11B (1) This paragraph applies for the purposes of determining the value of a supply consisting of the letting on hire of a motor vehicle on relevant benefit terms.
(2) But this paragraph is to be ignored for the purposes of Schedule 1 (VAT registration).
(3) “Relevant benefit terms” is to be construed in accordance with paragraph (2) of item 15 in Group 12 in Schedule 8 (zero-rating).
(4) Any amount of consideration for the letting that falls within sub-paragraph (d) of that paragraph (payments of relevant benefits) is to be disregarded in determining the amount of the consideration for the purposes of calculating the value of the supply under this Act.
12 Regulations may require that in prescribed circumstances there is to be taken into account, as constituting part of the consideration for the purposes of section 19(2) (where it would not otherwise be so taken into account), money paid in respect of the supply by persons other than those to whom the supply is made.
13 A direction under paragraph 1 or 2 above may be varied or withdrawn by the Commissioners by a further direction given by notice in writing.
Part 1 INDEX TO REDUCED-RATE SUPPLIES OF GOODS AND SERVICES
Cable-suspended passenger transport systems | Group 13
Caravans | Group 12
Children’s car seats.................... | Group 5
Contraceptive products | Group 8
Course of catering | Group 14
Domestic fuel or power.................... | Group 1
Installation of energy-saving materials from 1st April 2027 .................... | Group 2
Heating equipment, security goods and gas supplies: grant-funded installation or connection.................... | Group 3
Holiday accommodation etc | Group 15
Installation of mobility aids for the elderly | Group 10
Renovation and alteration of dwellings.................... | Group 7
Residential conversions.................... | Group 6
Shows and certain other attractions | Group 16
Smoking cessation products | Group 11
Welfare advice or information | Group 9
. . . | . . .
Part 2 THE GROUPS
Group 1 — Supplies of domestic fuel or power
ITEM NO.
1 Supplies for qualifying use of—
(a) coal, coke or other solid substances held out for sale solely as fuel;
(b) coal gas, water gas, producer gases or similar gases;
(c) petroleum gases, or other gaseous hydrocarbons, whether in a gaseous or liquid state;
(d) fuel oil, gas oil or kerosene; or
(e) electricity, heat or air-conditioning.
NOTES:
Matters included or not included in the supplies
1 (1) Item 1(a) shall be deemed to include combustible materials put up for sale for kindling fires but shall not include matches.
(2) Item 1(b) and (c) shall not include any road fuel gas (within the meaning of the Hydrocarbon Oil Duties Act 1979 (c. 5)) on which a duty of excise has been charged or is chargeable.
(3) Item 1(d) shall not include hydrocarbon oil on which a duty of excise has been or is to be charged without relief from, or rebate of, such duty by virtue of the provisions of the Hydrocarbon Oil Duties Act 1979 , unless the oil is—
(a) kerosene in respect of which a relevant declaration has been made under section 13AC(3) of that Act (use of rebated kerosene for private pleasure-flying); or
(b) oil in respect of which a relevant declaration has been made under section 14E(3) of that Act (use of rebated heavy oil for private pleasure craft)
Meaning of “fuel oil”, “gas oil” and “kerosene”
2 (1) In this Group “fuel oil” means heavy oil which contains in solution an amount of asphaltenes of not less than 0.5 per cent. or which contains less than 0.5 per cent. but not less than 0.1 per cent. of asphaltenes and has a closed flash point not exceeding 150°C.
(2) In this Group “gas oil” means heavy oil of which not more than 50 per cent. by volume distils at a temperature not exceeding 240°C and of which more than 50 per cent. by volume distils at a temperature not exceeding 340°C.
(3) In this Group “kerosene” means heavy oil of which more than 50 per cent. by volume distils at a temperature not exceeding 240°C.
(4) In this paragraph “heavy oil” has the same meaning as in the Hydrocarbon Oil Duties Act 1979.
Meaning of “qualifying use”
3 In this Group “qualifying use” means—
(a) domestic use; or
(b) use by a charity otherwise than in the course or furtherance of a business.
Supplies only partly for qualifying use
4 For the purposes of this Group, where there is a supply of goods partly for qualifying use and partly not—
(a) if at least 60 per cent. of the goods are supplied for qualifying use, the whole supply shall be treated as a supply for qualifying use; and
(b) in any other case, an apportionment shall be made to determine the extent to which the supply is a supply for qualifying use.
Supplies deemed to be for domestic use
5 For the purposes of this Group the following supplies are always for domestic use—
(a) a supply of not more than one tonne of coal or coke held out for sale as domestic fuel;
(b) a supply of wood, peat or charcoal not intended for sale by the recipient;
(c) a supply to a person at any premises of piped gas (that is, gas within item 1(b), or petroleum gas in a gaseous state, provided through pipes) where the gas (together with any other piped gas provided to him at the premises by the same supplier) was not provided at a rate exceeding 150 therms a month or, if the supplier charges for the gas by reference to the number of kilowatt hours supplied, 4397 kilowatt hours a month;
(d) a supply of petroleum gas in a liquid state where the gas is supplied in cylinders the net weight of each of which is less than 50 kilogrammes and either the number of cylinders supplied is 20 or fewer or the gas is not intended for sale by the recipient;
(e) a supply of petroleum gas in a liquid state, otherwise than in cylinders, to a person at any premises at which he is not able to store more than two tonnes of such gas;
(f) a supply of not more than 2,300 litres of fuel oil, gas oil or kerosene;
(g) a supply of electricity to a person at any premises where the electricity (together with any other electricity provided to him at the premises by the same supplier) was not provided at a rate exceeding 1000 kilowatt hours a month.
Other supplies that are for domestic use
6 For the purposes of this Group supplies not within paragraph 5 are for domestic use if and only if the goods supplied are for use in—
(a) a building, or part of a building, that consists of a dwelling or number of dwellings;
(b) a building, or part of a building, used for a relevant residential purpose;
(c) self-catering holiday accommodation;
(d) a caravan; or
(e) a houseboat.
Interpretation of paragraph 6
7 (1) For the purposes of this Group, “use for a relevant residential purpose” means use as—
(a) a home or other institution providing residential accommodation for children,
(b) a home or other institution providing residential accommodation with personal care for persons in need of personal care by reason of old age, disablement, past or present dependence on alcohol or drugs or past or present mental disorder,
(c) a hospice,
(d) residential accommodation for students or school pupils,
(e) residential accommodation for members of any of the armed forces,
(f) a monastery, nunnery or similar establishment, or
(g) an institution which is the sole or main residence of at least 90 per cent. of its residents,
except use as a hospital, a prison or similar institution or an hotel or inn or similar establishment.
(2) For the purposes of this Group “self-catering holiday accommodation” includes any accommodation advertised or held out as such.
(3) In paragraph 6 “houseboat” means a boat or other floating decked structure designed or adapted for use solely as a place of permanent habitation and not having means of, or capable of being readily adapted for, self-propulsion.
Group 2 — Installation of energy-saving materials from 1st April 2027
1 Relevant supplies of services of installing energy-saving materials in —
(a) residential accommodation, or
(b) a building intended for use solely for a relevant charitable purpose.
2. Relevant supplies of energy-saving materials by a person who installs those materials in —
(a) residential accommodation, or
(b) a building intended for use solely for a relevant charitable purpose.
3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
NOTES:
...
A1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Meaning of “energy-saving materials”
1 (1) For the purposes of this Group “energy-saving materials” means any of the following—
(a) insulation for walls, floors, ceilings, roofs or lofts or for water tanks, pipes or other plumbing fittings;
(b) draught stripping for windows and doors;
(c) central heating system controls (including thermostatic radiator valves);
(d) hot water system controls;
(e) solar panels;
(f) wind turbines;
(g) water turbines;
(f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(g) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(h) ground source heat pumps;
(i) micro combined heat and power units. air source heat pumps;
(ia) water source heat pumps;
(j) micro combined heat and power units;
(k) boilers designed to be fuelled solely by wood, straw or similar vegetal matter.
(l) electrical storage batteries within sub-paragraph (2);
(m) smart diverters.
(2) An electrical storage battery is within this sub-paragraph if it is intended for use solely for storing energy converted from electricity that was—
(a) supplied to the residential accommodation or building in question, or
(b) generated by a microgeneration system.
(3) In sub-paragraph (2), “supplied” is to be construed in accordance with Part 1 of the Electricity Act 1989 (see section 64(1) of that Act).
(4) In sub-paragraph (1)(m), “smart diverter” means a device capable of automatically diverting electricity generated by a microgeneration system to one or more appliances, in particular circumstances.
(5) In sub-paragraphs (2) and (4), “microgeneration system” means equipment—
(a) that generates electricity, and
(b) that is itself an energy-saving material for the purposes of this Group.
Installation of heat pumps
1A For the purposes of item 1, “installing energy-saving materials” includes carrying out groundworks, or dredging a body of water, in order to install pipework or other equipment necessary for the operation of a ground source heat pump or a water source heat pump.
Meaning of “residential accommodation”
2 (1) For the purposes of this Group “residential accommodation” means—
(a) a building, or part of a building, that consists of a dwelling or a number of dwellings;
(b) a building, or part of a building, used for a relevant residential purpose;
(c) a caravan used as a place of permanent habitation; or
(d) a houseboat.
(2) For the purposes of this Group “use for a relevant residential purpose” has the same meaning as it has for the purposes of Group 1 (see paragraph 7(1) of the Notes to that Group).
(3) In sub-paragraph (1)(d) “houseboat” has the meaning given by paragraph 7(3) of the Notes to Group 1.
Meaning of “use for a relevant charitable purpose”
3 For the purposes of this Group a building is used “for a relevant charitable purpose” if it is used by a charity—
(a) otherwise than in the course or furtherance of a business, or
(b) as a village hall or similarly in providing social or recreational facilities for a local community.
Meaning of “use for a relevant charitable purpose”
3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
...
4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
...
5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Meaning of “relevant supplies”
6. For the purposes of this Group “relevant supplies” means supplies made on or after 1st April 2027.
Group 3 — Grant-funded installation of heating equipment or security goods or connection of gas supply
ITEM NO.
1 Supplies to a qualifying person of any services of installing heating appliances in the qualifying person’s sole or main residence.
2 Supplies of heating appliances made to a qualifying person by a person who installs those appliances in the qualifying person’s sole or main residence.
3 Supplies to a qualifying person of services of connecting, or reconnecting, a mains gas supply to the qualifying person’s sole or main residence.
4 Supplies of goods made to a qualifying person by a person connecting, or reconnecting, a mains gas supply to the qualifying person’s sole or main residence, being goods whose installation is necessary for the connection, or reconnection, of the mains gas supply.
5 Supplies to a qualifying person of services of installing, maintaining or repairing a central heating system in the qualifying person’s sole or main residence.
6 Supplies of goods made to a qualifying person by a person installing, maintaining or repairing a central heating system in the qualifying person’s sole or main residence, being goods whose installation is necessary for the installation, maintenance or repair of the central heating system.
7 Supplies consisting in the leasing of goods that form the whole or part of a central heating system installed in the sole or main residence of a qualifying person.
8 Supplies of goods that form the whole or part of a central heating system installed in a qualifying person’s sole or main residence and that, immediately before being supplied, were goods leased under arrangements such that the consideration for the supplies consisting in the leasing of the goods was, in whole or in part, funded by a grant made under a relevant scheme.
8A Supplies , so far as not falling within Group 23 in Schedule 8, to a qualifying person of services of installing, maintaining or repairing a renewable source heating system in the qualifying person’s sole or main residence.
8B Supplies , so far as not falling within Group 23 in Schedule 8, of goods made to a qualifying person by a person installing, maintaining or repairing a renewable source heating system in the qualifying person’s sole or main residence, being goods whose installation is necessary for the installation, maintenance or repair of the system.
9 Supplies to a qualifying person of services of installing qualifying security goods in the qualifying person’s sole or main residence.
10 Supplies of qualifying security goods made to a qualifying person by a person who installs those goods in the qualifying person’s sole or main residence.
NOTES:
Supply only included so far as grant-funded
1 (1) Each of items 1 to 7 and 8A to 10 applies to a supply only to the extent that the consideration for the supply is, or is to be, funded by a grant made under a relevant scheme.
(2) Item 8 applies to a supply only to the extent that the consideration for the supply—
(a) is, or is to be, funded by a grant made under a relevant scheme; or
(b) is a payment becoming due only by reason of the termination (whether by the passage of time or otherwise) of the leasing of the goods in question.
Meaning of “relevant scheme”
2 (1) For the purposes of this Group a scheme is a “relevant scheme” if it is one which satisfies the conditions specified in this paragraph.
(2) The first condition is that the scheme has as one of its objectives the funding of the installation of energy-saving materials in the homes of any persons who are qualifying persons.
(3) The second condition is that the scheme disburses, whether directly or indirectly, its grants in whole or in part out of funds made available to it in order to achieve that objective—
(a) by the Secretary of State,
(b) by the Scottish Ministers,
(c) by the National Assembly for Wales,
(d) by a Minister (within the meaning given by section 7(3) of the Northern Ireland Act 1998 (c. 47)) or a Northern Ireland department,
(e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(f) under an arrangement approved by the Gas and Electricity Markets Authority,
(g) under an arrangement approved by the Director General of Electricity Supply for Northern Ireland, or
(h) by a local authority.
(4) The reference in sub-paragraph (3)(f) to an arrangement approved by the Gas and Electricity Markets Authority includes a reference to an arrangement approved by the Director General of Electricity Supply, or the Director General of Gas Supply, before the transfer (under the Utilities Act 2000 (c. 27)) of his functions to the Authority.
Apportionment of grants that also cover other supplies
3 Where a grant is made under a relevant scheme in order—
(a) to fund a supply of a description to which any of items 1 to 10 applies (“the relevant supply”), and
(b) also to fund a supply to which none of those items applies (“the non-relevant supply”),
the proportion of the grant that is to be attributed, for the purposes of paragraph 1, to the relevant supply shall be the same proportion as the consideration reasonably attributable to that supply bears to the consideration for that supply and for the non-relevant supply.
Meaning of “heating appliances”
4 For the purposes of items 1 and 2 “heating appliances” means any of the following—
(a) gas-fired room heaters that are fitted with thermostatic controls;
(b) electric storage heaters;
(c) closed solid fuel fire cassettes;
(d) electric dual immersion water heaters with factory-insulated hot water tanks;
(e) gas-fired boilers;
(f) oil-fired boilers;
(g) radiators.
Meaning of “central heating system”
4A For the purposes of items 5 to 8 “central heating system” includes a system which generates electricity.
Meaning of “renewable source heating system”
4B For the purposes of items 8A and 8B “renewable source heating system” means a space or water heating system which uses energy from—
(a) renewable sources, including solar, wind and hydroelectric power, or
(b) near renewable resources, including ground and air heat.
Meaning of “qualifying security goods”
5 For the purposes of items 9 and 10 “qualifying security goods” means any of the following—
(a) locks or bolts for windows;
(b) locks, bolts or security chains for doors;
(c) spy holes;
(d) smoke alarms.
Meaning of “qualifying person”
6 (1) For the purposes of this Group, a person to whom a supply is made is “a qualifying person” if at the time of the supply he—
(a) is aged 60 or over; or
(b) is in receipt of one or more of the benefits mentioned in sub-paragraph (2).
(2) Those benefits are—
(a) council tax benefit under Part 7 of the Contributions and Benefits Act;
(b) disability living allowance under Part 3 of the Contributions and Benefits Act or Part 3 of the Northern Ireland Act;
(c) any element of child tax credit other than the family element, working tax credit, housing benefit or income support under Part 7 of the Contributions and Benefits Act or Part 7 of the Northern Ireland Act;
(d) an income-based jobseeker’s allowance within the meaning of section 1(4) of the Jobseekers Act 1995 (c. 18) or Article 3(4) of the Jobseekers (Northern Ireland) Order 1995 (S.I. 1995/275 (N.I. 15));
(e) disablement pension under Part 5 of the Contributions and Benefits Act, or Part 5 of the Northern Ireland Act, that is payable at the increased rate provided for under section 104 (constant attendance allowance) of the Act concerned;
(f) war disablement pension under the Naval, Military and Air Forces Etc. (Disablement and Death) Service Pensions Order 1983 (S.I. 1983/883) that is payable at the increased rate provided for under article 14 (constant attendance allowance) or article 26A (mobility supplement) of that Order.
(g) personal independence payment under Part 4 of the Welfare Reform Act 2012 or the corresponding provision having effect in Northern Ireland;
(h) armed forces independence payment under a scheme established under section 1 of the Armed Forces (Pensions and Compensation) Act 2004.
(i) universal credit under Part 1 of the Welfare Reform Act 2012 or Part 2 of the Welfare Reform (Northern Ireland) Order 2015.
(3) In sub-paragraph (2)—
(a) “the Contributions and Benefits Act” means the Social Security Contributions and Benefits Act 1992 (c. 4); and
(b) “the Northern Ireland Act” means the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7).
Group 4 — Women’s sanitary products
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Group 5 — Children’s car seats
ITEM NO.
1 Supplies of children’s car seats.
NOTES:
Meaning of “children’s car seats”
1 (1) For the purposes of this Group, the following are “children’s car seats”—
(a) a safety seat;
(aa) a related base unit for a safety seat;
(b) the combination of a safety seat and a related wheeled framework;
(c) a booster seat;
(d) a booster cushion.
(2) In this Group “child” means a person aged under 14 years.
Meaning of “safety seat”
2 In this Group “safety seat” means a seat—
(a) designed to be sat in by a child in a road vehicle,
(b) designed so that, when in use in a road vehicle, it can be restrained in one or more of the following ways—
(i) by a seat belt fitted in the vehicle, or
(ii) by belts, or anchorages, that form part of the seat being attached to the vehicle, or
(iii) by a related base unit, and
(c) incorporating an integral harness, or integral impact shield, for restraining a child seated in it.
Meaning of “related base unit”
2A In this Group “related base unit” means a base unit which is designed solely for the purpose of attaching a safety seat securely in a road vehicle by means of anchorages that form part of the base unit and which, when in use in a road vehicle, can be restrained in one or more of the following ways—
(a) by a seat belt fitted in the vehicle, or
(b) by permanent anchorage points in the vehicle, or
(c) by belts attached to permanent anchorage points in the vehicle.
Meaning of “related wheeled framework”
3 For the purposes of this Group, a wheeled framework is “related” to a safety seat if the framework and the seat are each designed so that—
(a) when the seat is not in use in a road vehicle it can be attached to the framework, and
(b) when the seat is so attached, the combination of the seat and the framework can be used as a child’s pushchair.
Meaning of “booster seat”
4 In this Group “booster seat” means a seat designed—
(a) to be sat in by a child in a road vehicle, and
(b) so that, when in use in a road vehicle, it and a child seated in it can be restrained by a seat belt fitted in the vehicle.
Meaning of “booster cushion”
5 In this Group “booster cushion” means a cushion designed—
(a) to be sat on by a child in a road vehicle, and
(b) so that a child seated on it can be restrained by a seat belt fitted in the vehicle
Group 6 — Residential conversions
ITEM NO.
1 The supply, in the course of a qualifying conversion, of qualifying services related to the conversion.
2 The supply of building materials if—
(a) the materials are supplied by a person who, in the course of a qualifying conversion, is supplying qualifying services related to the conversion, and
(b) those services include the incorporation of the materials in the building concerned or its immediate site.
NOTES:
Supplies only partly within item 1
1 (1) Sub-paragraph (2) applies where a supply of services is only in part a supply to which item 1 applies.
(2) The supply, to the extent that it is one to which item 1 applies, is to be taken to be a supply to which item 1 applies.
(3) An apportionment may be made to determine that extent.
Meaning of “qualifying conversion”
2 (1) A “qualifying conversion” means—
(a) a changed number of dwellings conversion (see paragraph 3);
(b) a house in multiple occupation conversion (see paragraph 5); or
(c) a special residential conversion (see paragraph 7).
(2) Sub-paragraph (1) is subject to paragraphs 9 and 10.
Meaning of “changed number of dwellings conversion”
3 (1) A “changed number of dwellings conversion” is—
(a) a conversion of premises consisting of a building where the conditions specified in this paragraph are satisfied, or
(b) a conversion of premises consisting of a part of a building where those conditions are satisfied.
(2) The first condition is that after the conversion the premises being converted contain a number of single household dwellings that is—
(a) different from the number (if any) that the premises contain before the conversion, and
(b) greater than, or equal to, one.
(3) The second condition is that there is no part of the premises being converted that is a part that after the conversion contains the same number of single household dwellings (whether zero, one or two or more) as before the conversion.
Meaning of “single household dwelling” and “multiple occupancy dwelling”
4 (1) For the purposes of this Group “single household dwelling” means a dwelling—
(a) that is designed for occupation by a single household, and
(b) in relation to which the conditions set out in sub-paragraph (3) are satisfied.
(2) For the purposes of this Group “multiple occupancy dwelling” means a dwelling—
(a) that is designed for occupation by persons not forming a single household, . . .
(aa) that is not to any extent used for a relevant residential purpose, and
(b) in relation to which the conditions set out in sub-paragraph (3) are satisfied.
(3) The conditions are—
(a) that the dwelling consists of self-contained living accommodation,
(b) that there is no provision for direct internal access from the dwelling to any other dwelling or part of a dwelling,
(c) that the separate use of the dwelling is not prohibited by the terms of any covenant, statutory planning consent or similar provision, and
(d) that the separate disposal of the dwelling is not prohibited by any such terms.
(4) For the purposes of this paragraph, a dwelling “is designed” for occupation of a particular kind if it is so designed—
(a) as a result of having been originally constructed for occupation of that kind and not having been subsequently adapted for occupation of any other kind, or
(b) as a result of adaptation.
Meaning of “house in multiple occupation conversion”
5 (1) A “house in multiple occupation conversion” is—
(a) a conversion of premises consisting of a building where the condition specified in sub-paragraph (2) below is satisfied, or
(b) a conversion of premises consisting of a part of a building where that condition is satisfied.
(2) The condition is that—
(a) before the conversion the premises being converted do not contain any multiple occupancy dwellings,
(b) after the conversion those premises contain only a multiple occupancy dwelling or two or more such dwellings, and
(c) the use to which those premises are intended to be put after the conversion is not to any extent use for a relevant residential purpose.
Meaning of “use for a relevant residential purpose”
6 For the purposes of this Group “use for a relevant residential purpose” means use as—
(a) a home or other institution providing residential accommodation for children,
(b) a home or other institution providing residential accommodation with personal care for persons in need of personal care by reason of old age, disablement, past or present dependence on alcohol or drugs or past or present mental disorder,
(c) a hospice,
(d) residential accommodation for students or school pupils,
(e) residential accommodation for members of any of the armed forces,
(f) a monastery, nunnery or similar establishment, or
(g) an institution which is the sole or main residence of at least 90 per cent. of its residents,
except use as a hospital, prison or similar institution or an hotel, inn or similar establishment.
Meaning of “special residential conversion”
7 (1) A “special residential conversion” is a conversion of premises consisting of—
(a) a building or two or more buildings,
(b) a part of a building or two or more parts of buildings, or
(c) a combination of—
(i) a building or two or more buildings, and
(ii) a part of a building or two or more parts of buildings,
where the conditions specified in this paragraph are satisfied.
(2) The first condition is that—
(a) the use to which the premises being converted were last put before the conversion was not to any extent use for a relevant residential purpose, and
(b) those premises are intended to be used solely for a relevant residential purpose after the conversion.
(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(6) The second condition is that, where the relevant residential purpose for which the premises are intended to be used is an institutional purpose, the premises being converted must be intended to form after the conversion the entirety of an institution used for that purpose.
(7) In sub-paragraph (6) “institutional purpose” means a purpose within paragraph 6(a) to (c), (f) or (g).
Special residential conversions: reduced rate only for supplies made to intended user of converted accommodation
8 (1) This paragraph applies where the qualifying conversion concerned is a special residential conversion.
(2) Item 1 or 2 does not apply to a supply unless—
(a) it is made to a person who intends to use the premises being converted for the relevant residential purpose, and
(b) before it is made, the person to whom it is made has given to the person making it a certificate that satisfies the requirements in sub-paragraph (3).
(3) Those requirements are that the certificate—
(a) is in such form as may be specified in a notice published by the Commissioners, and
(b) states that the conversion is a special residential conversion.
(4) In sub-paragraph (2)(a) “the relevant residential purpose” means the purpose within paragraph 6 for which the premises being converted are intended to be used after the conversion.
“Qualifying conversion” includes related garage works
9 (1) A qualifying conversion includes any garage works related to the—
(a) changed number of dwellings conversion,
(b) house in multiple occupation conversion, or
(c) special residential conversion,
concerned.
(2) In this paragraph “garage works” means—
(a) the construction of a garage, or
(b) a conversion of a non-residential building, or of a non-residential part of a building, that results in a garage.
(3) For the purposes of sub-paragraph (1), garage works are “related” to a conversion if—
(a) they are carried out at the same time as the conversion, and
(b) the resulting garage is intended to be occupied with—
(i) where the conversion concerned is a changed number of dwellings conversion, a single household dwelling that will after the conversion be contained in the building, or part of a building, being converted,
(ii) where the conversion concerned is a house in multiple occupation conversion, a multiple occupancy dwelling that will after the conversion be contained in the building, or part of a building, being converted, or
(iii) where the conversion concerned is a special residential conversion, the institution or other accommodation resulting from the conversion.
(4) In sub-paragraph (2) “non-residential” means neither designed, nor adapted, for use—
(a) as a dwelling or two or more dwellings, or
(b) for a relevant residential purpose.
Conversion not “qualifying” if planning consent and building control approval not obtained
10 (1) A conversion is not a qualifying conversion if any statutory planning consent needed for the conversion has not been granted.
(2) A conversion is not a qualifying conversion if any statutory building control approval needed for the conversion has not been granted.
Meaning of “supply of qualifying services”
11 (1) In the case of a conversion of a building, “supply of qualifying services” means a supply of services that consists in—
(a) the carrying out of works to the fabric of the building, or
(b) the carrying out of works within the immediate site of the building that are in connection with—
(i) the means of providing water, power, heat or access to the building,
(ii) the means of providing drainage or security for the building, or
(iii) the provision of means of waste disposal for the building.
(2) In the case of a conversion of part of a building, “supply of qualifying services” means a supply of services that consists in—
(a) the carrying out of works to the fabric of the part, or
(b) the carrying out of works to the fabric of the building, or within the immediate site of the building, that are in connection with—
(i) the means of providing water, power, heat or access to the part,
(ii) the means of providing drainage or security for the part, or
(iii) the provision of means of waste disposal for the part.
(3) In this paragraph—
(a) references to the carrying out of works to the fabric of a building do not include the incorporation, or installation as fittings, in the building of any goods that are not building materials;
(b) references to the carrying out of works to the fabric of a part of a building do not include the incorporation, or installation as fittings, in the part of any goods that are not building materials.
Meaning of “building materials”
12 In this Group “building materials” has the meaning given by Notes (22) and (23) of Group 5 to Schedule 8 (zero-rating of construction and conversion of buildings).
Group 7 — RESIDENTIAL RENOVATIONS AND ALTERATIONS
ITEM NO.
1 The supply, in the course of the renovation or alteration of qualifying residential premises, of qualifying services related to the renovation or alteration.
2 The supply of building materials if—
(a) the materials are supplied by a person who, in the course of the renovation or alteration of qualifying residential premises, is supplying qualifying services related to the renovation or alteration, and
(b) those services include the incorporation of the materials in the premises concerned or their immediate site.
NOTES:
Supplies only partly within item 1
1 (1) Sub-paragraph (2) applies where a supply of services is only in part a supply to which item 1 applies.
(2) The supply, to the extent that it is one to which item 1 applies, is to be taken to be a supply to which item 1 applies.
(3) An apportionment may be made to determine that extent.
Meaning of “alteration” and “qualifying residential premises”
2 (1) For the purposes of this Group—
“alteration” includes extension;
“qualifying residential premises” means—
a single household dwelling,
a multiple occupancy dwelling, or
a building, or part of a building, which, when it was last lived in, was used for a relevant residential purpose.
(2) Where a building, when it was last lived in, formed part of a relevant residential unit then, to the extent that it would not be so regarded otherwise, the building shall be treated as having been used for a relevant residential purpose.
(3) A building forms part of a relevant residential unit at any time when—
(a) it is one of a number of buildings on the same site, and
(b) the buildings are used together as a unit for a relevant residential purpose.
(4) The following expressions have the same meaning in this Group as they have in Group 6—
“multiple occupancy dwelling”(paragraph 4(2) of the Notes to that Group);
“single household dwelling”(paragraph 4(1) of the Notes);
“use for a relevant residential purpose”(paragraph 6 of the Notes).
Items 1 and 2 only apply where premises have been empty for at least 2 years
3 (1) Item 1 or 2 does not apply to a supply unless—
(a) the first empty home condition is satisfied, or
(b) if the premises are a single household dwelling, either of the empty home conditions is satisfied.
(2) The first “empty home condition” is that neither—
(a) the premises concerned, nor
(b) where those premises are a building, or part of a building, which, when it was last lived in, formed part of a relevant residential unit, any of the other buildings that formed part of the unit,
have been lived in during the period of 2 years ending with the commencement of the relevant works.
(3) The second “empty home condition” is that—
(a) the dwelling was not lived in during a period of at least 2 years;
(b) the person, or one of the persons, whose beginning to live in the dwelling brought that period to an end was a person who (whether alone or jointly with another or others) acquired the dwelling at a time—
(i) no later than the end of that period, and
(ii) when the dwelling had been not lived in for at least 2 years;
(c) no works by way of renovation or alteration were carried out to the dwelling during the period of 2 years ending with the acquisition;
(d) the supply is made to a person who is—
(i) the person, or one of the persons, whose beginning to live in the property brought to an end the period mentioned in paragraph (a), and
(ii) the person, or one of the persons, who acquired the dwelling as mentioned in paragraph (b); and
(e) the relevant works are carried out during the period of one year beginning with the day of the acquisition.
(4) In this paragraph “the relevant works” means—
(a) where the supply is of the description set out in item 1, the works that constitute the services supplied;
(b) where the supply is of the description set out in item 2, the works by which the materials concerned are incorporated in the premises concerned or their immediate site.
(5) In sub-paragraph (3), references to a person acquiring a dwelling are to that person having a major interest in the dwelling granted, or assigned, to him for a consideration.
Items 1 and 2 apply to related garage works
3A (1) For the purposes of this Group a renovation or alteration of any premises includes any garage works related to the renovation or alteration.
(2) In this paragraph “garage works” means—
(a) the construction of a garage,
(b) the conversion of a building, or of a part of a building, that results in a garage, or
(c) the renovation or alteration of a garage.
(3) For the purposes of sub-paragraph (1), garage works are “related” to a renovation or alteration if—
(a) they are carried out at the same time as the renovation or alteration of the premises concerned, and
(b) the garage is intended to be occupied with the premises.
Items 1 and 2 only apply if planning consent and building control approval obtained
4 (1) Item 1 or 2 does not apply to a supply unless any statutory planning consent needed for the renovation or alteration has been granted.
(2) Item 1 or 2 does not apply to a supply unless any statutory building control approval needed for the renovation or alteration has been granted.
Items 1 and 2 only apply if building used for relevant residential purpose is subsequently used solely for that purpose
4A (1) Item 1 or 2 does not apply to a supply if the premises in question are a building, or part of a building, which, when it was last lived in, was used for a relevant residential purpose unless—
(a) the building or part is intended to be used solely for such a purpose after the renovation or alteration, and
(b) before the supply is made the person to whom it is made has given to the person making it a certificate stating that intention.
(2) Where a number of buildings on the same site are—
(a) renovated or altered at the same time, and
(b) intended to be used together as a unit solely for a relevant residential purpose,
then each of those buildings, to the extent that it would not be so regarded otherwise, shall be treated as intended for use solely for a relevant residential purpose.
Meaning of “supply of qualifying services”
5 (1) “Supply of qualifying services” means a supply of services that consists in—
(a) the carrying out of works to the fabric of the premises, or
(b) the carrying out of works within the immediate site of the premises that are in connection with—
(i) the means of providing water, power, heat or access to the premises,
(ii) the means of providing drainage or security for the premises, or
(iii) the provision of means of waste disposal for the premises.
(2) In sub-paragraph (1)(a), the reference to the carrying out of works to the fabric of the premises does not include the incorporation, or installation as fittings, in the premises of any goods that are not building materials.
Meaning of “building materials”
6 In this Group “building materials” has the meaning given by Notes (22) and (23) of Group 5 to Schedule 8 (zero-rating of construction and conversion of buildings).
Group 8— CONTRACEPTIVE PRODUCTS
ITEM NO.
1 Supplies of contraceptive products, other than relevant exempt supplies.
NOTES:
Meaning of “contraceptive products”
In this Group “contraceptive product” means any product designed for the purposes of human contraception, but does not include any product designed for the purpose of monitoring fertility.
Meaning of “relevant exempt supplies”
In this Group “relevant exempt supplies” means supplies which fall within item 4 of Group 7 of Schedule 9 (exempt supplies of goods in any hospital etc. in connection with medical or surgical treatment etc.).
Group 9— WELFARE ADVICE OR INFORMATION
ITEM NO.
1 Supplies of welfare advice or information by—
(a) a charity, or
(b) a state-regulated private welfare institution or agency.
NOTES:
Meaning of “welfare advice or information”
In this Group “welfare advice or information” means advice or information which directly relates to—
the physical or mental welfare of elderly, sick, distressed or disabled persons, or
the care or protection of children and young persons.
Meaning of “state-regulated”
For the purposes of this Group “state-regulated” has the same meaning as in Group 7 (health and welfare) of Schedule 9 (see Note (8) of that Group).
Meaning of “state-regulated”
Item 1 does not include—
supplies that would be exempt by virtue of Group 6 of Schedule 9 (education) if they were made by an eligible body within the meaning of that Group,
supplies of goods, unless the goods are supplied wholly or almost wholly for the purpose of conveying the advice or information, or
supplies of advice or information provided solely for the benefit of a particular individual or according to his personal circumstances.
Group 10 – INSTALLATION OF MOBILITY AIDS FOR THE ELDERLY
ITEM NO.
1 The supply of services of installing mobility aids for use in domestic accommodation by a person who, at the time of the supply, is aged 60 or over.
2. The supply of mobility aids by a person installing them for use in domestic accommodation by a person who, at the time of the supply, is aged 60 or over.
NOTES:
Meaning of “mobility aids”
For the purposes of this Group “mobility aids” means any of the following—
grab rails;
ramps;
stair lifts;
bath lifts;
built-in shower seats or showers containing built-in shower seats;
walk-in baths fitted with sealable doors.
Meaning of “domestic accommodation”
For the purposes of this Group “domestic accommodation” means a building, or part of a building, that consists of a dwelling or a number of dwellings.
Group 11 — SMOKING CESSATION PRODUCTS
ITEM NO.
1. Supplies of pharmaceutical products designed to help people to stop smoking tobacco.
GROUP 12 CARAVANS
Item No
1 Supplies of caravans which exceed the limits of size of a trailer for the time being permitted to be towed on roads by a motor vehicle having a maximum gross weight of 3,500 kilogrammes.
2 The supply of such services as are described in paragraph 1(1) or 5(4) of Schedule 4 in respect of a caravan within item 1.
NOTE: This Group does not include—
removable contents other than goods of a kind mentioned in item 4 of Group 5 of Schedule 8, or
the supply of accommodation in a caravan.
GROUP 13 CABLE-SUSPENDED PASSENGER TRANSPORT SYSTEMS
Item No.
1 Transport of passengers by means of a cable-suspended chair, bar, gondola or similar vehicle designed or adapted to carry not more than 9 passengers.
NOTES:
Supplies not within item 1
Item 1 does not include the transport of passengers to, from or within—
a place of entertainment, recreation or amusement; or
a place of cultural, scientific, historical or similar interest,
by the person, or a person connected with that person, who supplies a right of admission to, or a right to use facilities at, such a place.
For the purposes of Note 1 any question as to whether a person is connected with another shall be determined in accordance with section 1122 of the Corporation Tax Act 2010.
Group 14 — Course of Catering
Item No
1 Supplies in the course of catering of—
(a) any food or drink for consumption on the premises on which it is supplied, or
(b) any hot food or hot drink for consumption off those premises,
NOTES
Note (3A) to Group 1 (Food) of Schedule 8 applies in relation to this Group as it applies in relation to Note (3) in that Group.
Notes (3B) to (3D) to Group 1 (Food) of Schedule 8 apply in relation to this Group as they apply in relation to that Group.
“Alcoholic beverage” means a beverage within Item 3 in the list of excepted items in Group 1 of Schedule 8.
Group 15 — Holiday accommodation etc
Item No
1 Any supply which, because it falls within paragraph (d), (e) so far as the supply consists of the grant of a licence to occupy holiday accommodation, (f) or (g) of Item 1 in Group 1 (Land) of Schedule 9, is not an exempt supply by virtue of that Item.
Group 16 — Shows and certain other attractions
Item No
1 Supplies of a right of admission to shows, theatres, circuses, fairs, amusement parks, concerts, museums, zoos, cinemas and exhibitions and similar cultural events and facilities but excluding any supplies that are exempt supplies by virtue of Items 1 or 2 in Group 13 of Schedule 9.
Section 30.
Part I Index to zero-rated supplies of goods and services
Subject matter | Group Number | 1983 Group Number
Bank notes | Group 11 | Group 13
Books etc. | Group 3 | Group 3
Caravans and houseboats | Group 9 | Group 11
Charities etc. | Group 15 | Group 16
Clothing and footwear | Group 16 | Group 17
Construction of buildings etc. | Group 5 | Group 8
Drugs, medicines, aids for the disabled etc. | Group 12 | Group 14
Energy-saving materials: installation in England and Wales and Scotland from 1 April 2022 to 31 March 2027 , and in Northern Ireland from 1st May 2023 to 31st March 2027 | Group 23
. . . | . . .
. . . | . . .
Food | Group 1 | Group 1
Free zones | Group 22
Gold | Group 10 | Group 12
Imports, exports etc. | Group 13 | Group 15
International services | Group 7 | Group 9
Online marketplaces (deemed supply) | Group 21
Personal protective equipment (coronavirus) | Group 20
Protected buildings | Group 6 | Group 8A
Sewerage services and water | Group 2 | Group 2
Talking books for the blind and disabled and wireless sets for the blind | Group 4 | Group 4
. . . | . . . | . . .
Transport | Group 8 | Group 10
Women's sanitary products | Group 19
Part II The Groups
Group 1— Food
The supply of anything comprised in the general items set out below, except—
(a) a supply in the course of catering; and
(b) a supply of anything comprised in any of the excepted items set out below, unless it is also comprised in any of the items overriding the exceptions set out below which relates to that excepted item.
General items
Item No.
1 Food of a kind used for human consumption.
2 Animal feeding stuffs.
3 Seeds or other means of propagation of plants comprised in item 1 or 2.
4 Live animals of a kind generally used as, or yielding or producing, food for human consumption.
Excepted items
Item No.
1 Ice cream, ice lollies, frozen yogurt, water ices and similar frozen products, and prepared mixes and powders for making such products.
2 Confectionery, not including cakes or biscuits other than biscuits wholly or partly covered with chocolate or some product similar in taste and appearance.
3 Beverages chargeable with alcohol duty under Part 2 of the Finance (No. 2) Act 2023 and preparations thereof.
4 Other beverages (including fruit juices and bottled waters) and syrups, concentrates, essences, powders, crystals or other products for the preparation of beverages.
4A Sports drinks that are advertised or marketed as products designed to enhance physical performance, accelerate recovery after exercise or build bulk, and other similar drinks, including (in either case) syrups, concentrates, essences, powders, crystals or other products for the preparation of such drinks.
5 Any of the following when packaged for human consumption without further preparation, namely, potato crisps, potato sticks, potato puffs, and similar products made from the potato, or from potato flour, or from potato starch, and savoury food products obtained by the swelling of cereals or cereal products; and salted or roasted nuts other than nuts in shell.
6 Pet foods, canned, packaged or prepared; packaged foods (not being pet foods) for birds other than poultry or game; and biscuits and meal for cats and dogs.
7 Goods described in items 1, 2 and 3 of the general items which are canned, bottled, packaged or prepared for use—
(a) in the domestic brewing of any beer;
(b) in the domestic making of any cider or perry;
(c) in the domestic production of any wine or other fermented products (as defined in Part 2 of the Finance (No. 2) Act 2023).
Items overriding the exceptions
Item No.
1 Yoghurt unsuitable for immediate consumption when frozen.
2 Drained cherries.
3 Candied peels.
4 Tea, maté, herbal teas and similar products, and preparations and extracts thereof.
5 Cocoa, coffee and chicory and other roasted coffee substitutes, and preparations and extracts thereof.
6 Milk and preparations and extracts thereof.
7 Preparations and extracts of meat, yeast or egg.
Notes:
(1) “Food” includes drink.
(2) “Animal” includes bird, fish, crustacean and mollusc.
(3) A supply of anything in the course of catering includes—
(a) any supply of it for consumption on the premises on which it is supplied; and
(b) any supply of hot food for consumption off those premises;
...
(3A) For the purposes of Note (3), in the case of any supplier, the premises on which food is supplied include any area set aside for the consumption of food by that supplier's customers, whether or not the area may also be used by the customers of other suppliers.
(3B) “Hot food” means food which (or any part of which) is hot at the time it is provided to the customer and—
(a) has been heated for the purposes of enabling it to be consumed hot,
(b) has been heated to order,
(c) has been kept hot after being heated,
(d) is provided to a customer in packaging that retains heat (whether or not the packaging was primarily designed for that purpose) or in any other packaging that is specifically designed for hot food, or
(e) is advertised or marketed in a way that indicates that it is supplied hot.
(3C) For the purposes of Note (3B)—
(a) something is “hot” if it is at a temperature above the ambient air temperature, and
(b) something is “kept hot” after being heated if the supplier stores it in an environment which provides, applies or retains heat, or takes other steps to ensure it remains hot or to slow down the natural cooling process.
(3D) In Notes (3B) and (3C), references to food being heated include references to it being cooked or reheated.
(4) Item 1 of the items overriding the exceptions relates to item 1 of the excepted items.
(5) Items 2 and 3 of the items overriding the exceptions relate to item 2 of the excepted items; and for the purposes of item 2 of the excepted items “confectionery” includes chocolates, sweets and biscuits; drained, glacé or crystallised fruits; and any item of sweetened prepared food which is normally eaten with the fingers.
(6) Items 4 to 7 of the items overriding the exceptions relate to item 4 of the excepted items.
(7) Any supply described in this Group shall include a supply of services described in paragraph 1(1) of Schedule 4.
Group 2— Sewerage services and water
Item No.
1 Services of—
(a) reception, disposal or treatment of foul water or sewage in bulk, and
(b) emptying of cesspools, septic tanks or similar receptacles which are used otherwise than in connection with the carrying on in the course of a business of a relevant industrial activity.
2 The supply, for use otherwise than in connection with the carrying on in the course of a business of a relevant industrial activity, of water other than—
(a) distilled water, deionised water and water of similar purity, . . .
(b) water comprised in any of the excepted items set out in Group 1.
and
(c) water which has been heated so that it is supplied at a temperature higher than that at which it was before it was heated.
Note: “Relevant industrial activity” means any activity described in any of Divisions 1 to 5 of the 1980 edition of the publication prepared by the Central Statistical Office and known as the Standard Industrial Classification.
Group 3— Books, etc.
Item No.
1 Books, booklets, brochures, pamphlets and leaflets.
2 Newspapers, journals and periodicals.
3 Children’s picture books and painting books.
4 Music (printed, duplicated or manuscript).
5 Maps, charts and topographical plans.
6 Covers, cases and other articles supplied with items 1 to 5 and not separately accounted for.
7. The publications listed in Items 1 to 3 when supplied electronically, but excluding publications which—
(a) are wholly or predominantly devoted to advertising, or
(b) consist wholly or predominantly of audio or video content.
Notes
(1) Items 1 to 7 do not include plans or drawings for industrial, architectural, engineering, commercial or similar purposes.
(1A) Items 1 to 6 include the supply of the services described in paragraph 1(1) of Schedule 4 in respect of goods comprised in the items.
(2) Items 1 to 6 do not include goods in circumstances where—
(a) the supply of the goods is connected with a supply of services, and
(b) those connected supplies are made by different suppliers.
(2A) Item 7 does not include services in circumstances where—
(a) the supply of the services is connected with a supply of goods or services; and
(b) those connected supplies are made by different suppliers.
(3) For the purposes of Notes (2) and (2A) two supplies are connected with each other if, had those two supplies been made by a single supplier—
(a) they would have been treated as a single supply ..., and
(b) that single supply would have been a taxable supply (other than a zero-rated supply) or an exempt supply.
Group 4— Talking books for the blind and disabled and wireless sets for the blind
Item No.
1 The supply to the Royal National Institute for the Blind, the National Listening Library or other similar charities of—
(a) magnetic tape specially adapted for the recording and reproduction of speech for the blind or severely disabled;
(b) apparatus designed or specially adapted for the making on a magnetic tape, by way of the transfer of recorded speech from another magnetic tape, of a recording described in paragraph (f) below;
(c) apparatus designed or specially adapted for transfer to magnetic tapes of a recording made by apparatus described in paragraph (b) above;
(d) apparatus for re-winding magnetic tape described in paragraph (f) below;
(e) apparatus designed or specially adapted for the reproduction from recorded magnetic tape of speech for the blind or severely disabled which is not available for use otherwise than by the blind or severely disabled;
(f) magnetic tape upon which has been recorded speech for the blind or severely disabled, such recording being suitable for reproduction only in the apparatus mentioned in paragraph (e) above;
(g) apparatus solely for the making on a magnetic tape of a sound recording which is for use by the blind or severely disabled;
(h) parts and accessories (other than a magnetic tape for use with apparatus described in paragraph (g) above) for goods comprised in paragraphs (a) to (g) above;
(i) the supply of a service of repair or maintenance of any goods comprised in paragraphs (a) to (h) above.
2 The supply to a charity of—
(a) wireless receiving sets; or
(b) apparatus solely for the making and reproduction of a sound recording on a magnetic tape permanently contained in a cassette,
being goods solely for gratuitous loan to the blind.
Note: The supply mentioned in items 1 and 2 includes the letting on hire of goods comprised in the items.
GROUP 5-CONSTRUCTION OF BUILDINGS, ETC.
Item No.
1 The first grant by a person—
(a) constructing a building—
(i) designed as a dwelling or number of dwellings; or
(ii) intended for use solely for a relevant residential or a relevant charitable purpose; or
(b) converting a non-residential building or a non-residential part of a building into a building designed as a dwelling or number of dwellings or a building intended for use solely for a relevant residential purpose,
of a major interest in, or in any part of, the building, dwelling or its site.
2 The supply in the course of the construction of—
(a) a building designed as a dwelling or number of dwellings or intended for use solely for a relevant residential purpose or a relevant charitable purpose; or
(b) any civil engineering work necessary for the development of a permanent park for residential caravans,
of any services related to the construction other than the services of an architect, surveyor or any person acting as a consultant or in a supervisory capacity.
3 The supply to a relevant housing association in the course of conversion of a non-residential building or a non-residential part of a building into—
(a) a building or part of a building designed as a dwelling or number of dwellings; or
(b) a building or part of a building intended for use solely for a relevant residential purpose,
of any services related to the conversion other than the services of an architect, surveyor or any person acting as a consultant or in a supervisory capacity.
4 The supply of building materials to a person to whom the supplier is supplying services within item 2 or 3 of this Group which include the incorporation of the materials into the building (or its site) in question.
Notes:
(1) “Grant” includes an assignment or surrender.
(2) A building is designed as a dwelling or a number of dwellings where in relation to each dwelling the following conditions are satisfied—
(a) the dwelling consists of self-contained living accommodation;
(b) there is no provision for direct internal access from the dwelling to any other dwelling or part of a dwelling;
(c) the separate use, or disposal of the dwelling is not prohibited by the term of any covenant, statutory planning consent or similar provision; and
(d) statutory planning consent has been granted in respect of that dwelling and its construction or conversion has been carried out in accordance with that consent.
(3) The construction of, or conversion of a non-residential building to, a building designed as a dwelling or a number of dwellings includes the construction of, or conversion of a non-residential building to, a garage provided that—
(a) the dwelling and the garage are constructed or converted at the same time; and
(b) the garage is intended to be occupied with the dwelling or one of the dwellings.
(4) Use for a relevant residential purpose means use as—
(a) a home or other institution providing residential accommodation for children;
(b) a home or other institution providing residential accommodation with personal care for persons in need of personal care by reason of old age, disablement, past or present dependence on alcohol or drugs or past or present mental disorder;
(c) a hospice;
(d) residential accommodation for students or school pupils;
(e) residential accommodation for members of any of the armed forces;
(f) a monastery, nunnery or similar establishment; or
(g) an institution which is the sole or main residence of at least 90 per cent. of its residents,
except use as a hospital, prison or similar institution or an hotel, inn or similar establishment.
(5) Where a number of buildings are—
(a) constructed at the same time and on the same site; and
(b) are intended to be used together as a unit solely for a relevant residential purpose;
then each of those buildings, to the extent that they would not be so regarded but for this Note, are to be treated as intended for use solely for a relevant residential purpose.
(6) Use for a relevant charitable purpose means use by a charity in either or both the following ways, namely—
(a) otherwise than in the course or furtherance of a business;
(b) as a village hall or similarly in providing social or recreational facilities for a local community.
(7) For the purposes of item 1(b), and for the purposes of these Notes so far as having effect for the purposes of item 1(b), a building or part of a building is “non-residential” if—
(a) it is neither designed, nor adapted, for use—
(i) as a dwelling or number of dwellings, or
(ii) for a relevant residential purpose; or
(b) it is designed, or adapted, for such use but—
(i) it was constructed more than 10 years before the grant of the major interest;
and
(ii) no part of it has, in the period of 10 years immediately preceding the grant, been used as a dwelling or for a relevant residential purpose.
(7A) For the purposes of item 3, and for the purposes of these Notes so far as having effect for the purposes of item 3, a building or part of a building is “non-residential” if—
(a) it is neither designed, nor adapted, for use—
(i) as a dwelling or number of dwellings, or
(ii) for a relevant residential purpose; or
(b) it is designed, or adapted, for such use but—
(i) it was constructed more than 10 years before the commencement of the works of conversion, and
(ii) no part of it has, in the period of 10 years immediately preceding the commencement of those works, been used as a dwelling or for a relevant residential purpose, and
(iii) no part of it is being so used.
(8) References to a non-residential building or a non-residential part of a building do not include a reference to a garage occupied together with a dwelling.
(9) The conversion, other than to a building designed for a relevant residential purpose, of a non-residential part of a building which already contains a residential part is not included within items 1(b) or 3 unless the result of that conversion is to create an additional dwelling or dwellings.
(10) Where—
(a) part of a building that is constructed is designed as a dwelling or number of dwellings or is intended for use solely for a relevant residential purpose or relevant charitable purpose (and part is not); or
(b) part of a building that is converted is designed as a dwelling or number of dwellings or is used solely for a relevant residential purpose (and part is not)—
then in the case of—
(i) a grant or other supply relating only to the part so designed or intended for that use (or its site) shall be treated as relating to a building so designed or intended for such use;
(ii) a grant or other supply relating only to the part neither so designed nor intended for such use (or its site) shall not be so treated; and
(iii) any other grant or other supply relating to, or to any part of, the building (or its site), an apportionment shall be made to determine the extent to which it is to be so treated.
(11) Where, a service falling within the description in items 2 or 3 is supplied in part in relation to the construction or conversion of a building and in part for other purposes, an apportionment may be made to determine the extent to which the supply is to be treated as falling within items 2 or 3.
(12) Where all or part of a building is intended for use solely for a relevant residential purpose or a relevant charitable purpose—
(a) a supply relating to the building (or any part of it) shall not be taken for the purposes of items 2 and 4 as relating to a building intended for such use unless it is made to a person who intends to use the building (or part) for such a purpose; and
(b) a grant or other supply relating to the building (or any part of it) shall not be taken as relating to a building intended for such use unless before it is made the person to whom it is made has given to the person making it a certificate in such form as may be specified in a notice published by the Commissioners stating that the grant or other supply (or a specified part of it) so relates.
(13) The grant of an interest in, or in any part of—
(a) a building designed as a dwelling or number of dwellings; or
(b) the site of such a building,
is not within item 1 if—
(i) the interest granted is such that the grantee is not entitled to reside in the building or part, throughout the year; or
(ii) residence there throughout the year, or the use of the building or part as the grantee’s principal private residence, is prevented by the terms of a covenant, statutory planning consent or similar permission.
(14) Where the major interest referred to in item 1 is a tenancy or lease—
(a) if a premium is payable, the grant falls within that item only to the extent that it is made for consideration in the form of the premium; and
(b) if a premium is not payable, the grant falls within that item only to the extent that it is made for consideration in the form of the first payment of rent due under the tenancy or lease.
(15) The reference in item 2(b) of this Group to the construction of a civil engineering work does not include a reference to the conversion, reconstruction, alteration or enlargement of a work.
(16) For the purpose of this Group, the construction of a building does not include—
(a) the conversion, reconstruction or alteration of an existing building; or
(b) any enlargement of, or extension to, an existing building except to the extent the enlargement or extension creates an additional dwelling or dwellings; or
(c) subject to Note (17) below, the construction of an annexe to an existing building.
(17) Note 16(c) above shall not apply where the whole or a part of an annexe is intended for use solely for a relevant charitable purpose and—
(a) the annexe is capable of functioning independently from the existing building; and
(b) the only access or where there is more than one means of access, the main access to:
(i) the annexe is not via the existing building; and
(ii) the existing building is not via the annexe.
(18) A building only ceases to be an existing building when:
(a) demolished completely to ground level; or
(b) the part remaining above ground level consists of no more than a single facade or where a corner site, a double facade, the retention of which is a condition or requirement of statutory planning consent or similar permission.
(19) A caravan is not a residential caravan if residence in it throughout the year is prevented by the terms of a covenant, statutory planning consent or similar permission.
(20) Item 2 and Item 3 do not include the supply of services described in paragraph 1(1) or 5(4) of Schedule 4.
(21) In item 3 “relevant housing association” means–
(za) a private registered provider of social housing,
(a) a registered social landlord within the meaning of Part I of the Housing Act 1996 (Welsh registered social landlords),
(b) a registered social landlord within the meaning of the Housing (Scotland) Act 2010 (asp 17) which is either—
(i) a society registered under the Co-operative and Community Benefit Societies and Credit Unions Act 1965 (c.12), or
(ii) a company within the meaning of the Companies Act 2006 (c.46), or
(c) a registered housing association within the meaning of Part II of the Housing (Northern Ireland) Order 1992 (Northern Irish registered housing associations).
(22) “Building materials”, in relation to any description of building, means goods of a description ordinarily incorporated by builders in a building of that description, (or its site), but does not include—
(a) finished or prefabricated furniture, other than furniture designed to be fitted in kitchens;
(b) materials for the construction of fitted furniture, other than kitchen furniture;
(c) electrical or gas appliances, unless the appliance is an appliance which is—
(i) designed to heat space or water (or both) or to provide ventilation, air cooling, air purification, or dust extraction; or
(ii) intended for use in a building designed as a number of dwellings and is a door-entry system, a waste disposal unit or a machine for compacting waste; or
(iii) a burglar alarm, a fire alarm, or fire safety equipment or designed solely for the purpose of enabling aid to be summoned in an emergency; or
(iv) a lift or hoist;
(d) carpets or carpeting material.
(23) For the purposes of Note (22) above the incorporation of goods in a building includes their installation as fittings.
(24) Section 30(3) does not apply to goods forming part of a description of supply in this Group.
GROUP 6—PROTECTED BUILDINGS
Item No.
1 The first grant by a person substantially reconstructing a protected building, of a major interest in, or in any part of, the building or its site.
2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Notes:
(1) “Protected building” means a building which is designed to remain as or become a dwelling or number of dwellings (as defined in Note (2) below) or is intended for use solely for a relevant residential purpose or a relevant charitable purpose after the reconstruction or alteration and which, in either case, is—
(a) a listed building within the meaning of—
(i) the Planning (Listed Buildings and Conservation Areas) Act 1990 ; or
(ia) the Historic Environment (Wales) Act 2023; or
(ii) the Planning (Listed Buildings and Conservation Areas) (Scotland) Act 1997; or
(iii) the Planning Act (Northern Ireland) 2011; or
(b) a scheduled monument, within the meaning of—
(i) the Ancient Monuments and Archaeological Areas Act 1979; or
(ia) the Historic Environment (Wales) Act 2023; or
(ii) the Historic Monuments and Archaeological Objects (Northern Ireland) Order 1995.
(2) A building is designed to remain as or become a dwelling or number of dwellings where in relation to each dwelling the following conditions are satisfied—
(a) the dwelling consists of self-contained living accommodation;
(b) there is no provision for direct internal access from the dwelling to any other dwelling or part of a dwelling;
(c) the separate use, or disposal of the dwelling is not prohibited by the terms of any convenants, statutory planning consent or similar provision,
and includes a garage (occupied together with a dwelling) either constructed at the same time as the building or where the building has been sustantially reconstructed at the same time as that reconstruction.
(3) Notes (1), (4), (6) and (12) to (14) of Group 5 apply in relation to this Group as they apply in relation to that Group but subject to any appropriate modifications.
(4) For the purposes of item 1, a protected building is not to be regarded as substantially reconstructed unless, when the reconstruction is completed, the reconstructed building incorporates no more of the original building (that is to say, the building as it was before the reconstruction began) than the external walls, together with other external features of architectural or historic interest.
(5) Where part of a protected building that is substantially reconstructed is designed to remain as or become a dwelling or a number of dwellings or is intended for use solely for a relevant residential or relevant charitable purpose (and part is not)—
(a) a grant ... relating only to the part so designed or intended for such use (or its site) shall be treateed as relating to a building so designed or intended for such use;
(b) a grant ...relating only to the part neither so designed nor intended for such use (or its site) shall not be so treated; and
(c) in the case of any other grant ... relating to, or to any part of, the building (or its site), an apportionment shall be made to determine the extent to which it is to be so treated.
(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Group 7— International services
Item No.
1 The supply of services of work carried out on goods which, for that purpose, have been obtained ... in, or imported into, the United Kingdom and which are intended to be, and in fact are, subsequently exported ...—
(a) by or on behalf of the supplier; or
(b) where the recipient of the services belongs in a place outside the United Kingdom, by or on behalf of the recipient.
2 The supply of services consisting of the making of arrangements for—
(a) the export of any goods ...;
(b) a supply of services of the description specified in item 1 of this Group; or
(c) any supply of services which is made outside the United Kingdom.
Note: This Group does not include any services of a description specified in Group 2 or Group 5 of Schedule 9.
Group 8— Transport
1 The supply, repair or maintenance of a qualifying ship or the modification or conversion of any such ship provided that when so modified or converted it will remain a qualifying ship.
2 The supply, repair or maintenance of a qualifying aircraft or the modification or conversion of any such aircraft provided that when so modified or converted it will remain a qualifying aircraft.
2A The supply of parts and equipment, of a kind ordinarily installed or incorporated in, and to be installed, or incorporated in,—
(a) the propulsion, navigation or communication systems; or
(b) the general structure,
of a qualifying ship or, as the case may be, aircraft.
2B The supply of life jackets, life rafts, smoke hoods and similar safety equipment for use in a qualifying ship or, as the case may be, aircraft.
3 (a) The supply to and repair or maintenance for a charity providing rescue or assistance at sea of—
(i) any lifeboat;
(ii) carriage equipment designed solely for the launching and recovery of lifeboats;
(iii) tractors for the sole use of the launching and recovery of lifeboats;
(iv) winches and hauling equipment for the sole use of the recovery of lifeboats.
(b) The construction, modification, repair or maintenance for a charity providing rescue or assistance at sea of slipways used solely for the launching and recovery of lifeboats.
(c) The supply of spare parts or accessories to a charity providing rescue or assistance at sea for use in or with goods comprised in paragraph (a) above or slipways comprised in paragraph (b) above.
(d) The supply to a charity providing rescue or assistance at sea of equipment that is to be installed, incorporated or used in a lifeboat and is of a kind ordinarily installed, incorporated or used in a lifeboat.
(e) The supply of fuel to a charity providing rescue or assistance at sea where the fuel is for use in a lifeboat.
4 Transport of passengers—
(a) in any vehicle... designed or adapted to carry not less than 10 passengers;
(b) by a universal service provider;
(c) on any scheduled flight; or
(d) from a place within to a place outside the United Kingdom or vice versa, to the extent that those services are supplied in the United Kingdom.
5 The transport of goods—
(a) in the course of an importation from a place outside to a place within the United Kingdom, or
(b) in the course of an exportation from a place within to a place outside the United Kingdom.
6 Any services provided for—
(a) the handling of ships, aircraft or railway vehicles—
(i) in a port, customs and excise airport or international railway area, or
(ii) outside the United Kingdom;
(b) the handling or storage—
(i) in a port,
(ii) on land adjacent to a port,
(iii) in a customs and excise airport,
(iv) in an international railway area, or
(v) in a temporary storage facility,
of goods carried in a ship, aircraft or railway vehicle.
6ZA Any services provided in an airport that is not a customs and excise airport for—
(a) the handling of an aircraft, or
(b) the handling or storage of goods carried in an aircraft,
provided that the aircraft is of a type mentioned in paragraph (b)(i) of Note (A1).
6ZB. Any services provided in the United Kingdom for the handling of a railway vehicle on, or being prepared for, an international journey or for the handling or storage of goods carried on such a railway vehicle.
6A Air navigation services.
7 Pilotage services.
8 Salvage or towage services.
9 Any services supplied for or in connection with the surveying of any ship or aircraft or the classification of any ship or aircraft for the purposes of any register.
10 The making of arrangements for—
(a) the supply of, or of space in, any ship or aircraft; . . .
(b) the supply of any service included in items 1 and 2, 3 to 9 and 11.
(c) the supply of any goods of a description falling within items 2A or 2B , or paragraph (d) of item 3.
11 The supply—
(a) of services consisting of
(i) the transport of goods to or from a place—
(a) from which they are to be exported to a place outside the United Kingdom, or
(b) to which they have been imported from a place outside the United Kingdom,
(ii) the handling or storage of those goods at the place from which the goods are to be so exported, or the place to which they have been so imported, or
(iii) the handling or storage of those goods in connection with their transport to or from that place, or
(b) to a person who receives the supply for the purpose of a business carried on by him and who belongs outside the United Kingdom, of services of a description specified in paragraph (a) of item 6, item 6A, item 9 or paragraph (a) of item 10 of this Group.
12 The supply of a designated travel service to be enjoyed outside the United Kingdom, to the extent to which the supply is so enjoyed.
13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Notes:
(A1) In this Group—
(a) a “qualifying ship”is any ship of a gross tonnage of not less than 15 tons which is neither designed nor adapted for use for recreation or pleasure; and
(b) a “qualifying aircraft” is any aircraft which —
(i) is used by an airline operating for reward chiefly on international routes, or
(ii) is used by a State institution and meets the condition in Note (B1).
(B1) The condition is that the aircraft—
(a) is of a weight of not less than 8,000 kilograms, and
(b) is neither designed nor adapted for use for recreation or pleasure.
(C1) In Note (A1)(b)—
“airline” means an undertaking which provides services for the carriage by air of passengers or cargo (or both);
...
(1) In items 1 and 2 the supply of a qualifying ship or, as the case may be, aircraft includes the supply of services under a charter of that ship or aircraft except where the services supplied under such a charter consist wholly of any one or more of the following—
(a) transport of passengers;
(b) accommodation;
(c) entertainment;
(d) education;
being services wholly performed in the United Kingdom.
(2) Items 1, 2 , 2A, 2B and 3 include the letting on hire of the goods specified in the items.
(2A) Items 2A and 2B do not include the supply of parts and equipment to a Government department or any part of the Scottish Administration unless—
(a) they are installed or incorporated in the course of a supply which is treated as being made in the course or furtherance of a business carried on by the department; or
(b) the parts and equipment are to be installed or incorporated in ships or aircraft used for the purpose of providing rescue or assistance at sea.
(3) Item 3 shall not apply unless, before the supply is made, the recipient of the supply gives to the person making the supply a certificate stating—
(a) the name and address of the recipient;
(b) that the supply is of a description specified in item 3 of this Group.
(4) “Lifeboat” means any vessel used or to be used solely for rescue or assistance at sea.
(4ZA) “Vehicle” has the same meaning as in the Management Act.
(4A) Item 4 does not include the transport of passengers-—
(a) in any vehicle to, from or within-—
(i) a place of entertainment, recreation or amusement; or
(ii) a place of cultural, scientific, historical or similar interest,
by the person, or a person connected with him, who supplies a right of admission to, or a right to use facilities at, such a place;
(b) in any motor vehicle between a car park (or land adjacent thereto) and an airport passenger terminal (or land adjacent thereto) by the person, or a person connected with him, who supplies facilities for the parking of vehicles in that car park; or
(c) in an aircraft where the flight is advertised or held out to be for the purpose of—
(i) providing entertainment, recreation or amusement; or
(ii) the experience of flying, or the experience of flying in that particular aircraft,
and not primarily for the purpose of transporting passengers from one place to another.
(4B) For the purposes of Note (4A) any question whether a person is connected with another shall be determined in accordance with section 1122 of the Corporation Tax Act 2010.
(4C) In Note (4A)(b) “motor vehicle” means a mechanically propelled vehicle intended or adapted for use on the roads.
(4D) Item 4(a) includes the transport of passengers in a vehicle—
(a) which is designed, or substantially and permanently adapted, for the safe carriage of a person in a wheelchair or two or more such persons, and
(b) which, if it were not so designed or adapted, would be capable of carrying no less than 10 persons.
(4E) “Universal service provider” means a person who provides a universal postal service (within the meaning of Part 3 of the Postal Services Act 2011), or part of such a service, in the United Kingdom.
(5) Item 6 does not include the letting on hire of goods.
(6) In Item 6—
(a) “port” and “temporary storage facility” have the same meanings as in the Management Act;
(b) “international railway area” means—
(i) any place which may be designated as a railway customs area by virtue of section 26(1ZB) of the Management Act, or
(ii) such other place relating to international rail travel as may be specified in a notice published by the Commissioners;
(c) “railway vehicle” has the same meaning as in section 83 of the Railways Act 1993.
(6ZA) “Customs and excise airport” has the same meaning as in the Management Act.
(6ZB) An international journey is a journey starting in the United Kingdom and ending outside the United Kingdom or vice versa.
(6ZC) In Item 6ZB “railway vehicle” has the same meaning as in Item 6.
(6A) “Air navigation services” has the same meaning as in the Civil Aviation Act 1982 .
(7) Except for the purposes of item 11, paragraph (a) of item 6, item 6A,. item 9 and paragraph (a) of item 10 only include supplies of services where the ships or aircraft referred to in those paragraphs are qualifying ships or, as the case may be, aircraft..
(8) “Designated travel service” has the same meaning as in the Value Added Tax (Tour Operators) Order 1987.
(9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Group 9— Caravans and houseboats
Item No.
1 Caravans which exceed the limits of size of a trailer for the time being permitted to be towed on roads by a motor vehicle having a maximum gross weight of 3,500 kilogrammes and which—
(a) were manufactured to a version of standard BS 3632 issued by the British Standards Institution which came into effect on or after 17th June 2005, or
(b) are second-hand, were occupied before 6th April 2013 and were manufactured to a version of standard BS 3632 issued by that Institution which came into effect before 17th June 2005.
2 Houseboats being boats or other floating decked structures designed or adapted for use solely as places of permanent habitation and not having means of, or capable of being readily adapted for, self-propulsion.
3 The supply of such services as are described in paragraph 1(1) or 5(4) of Schedule 4 in respect of a caravan comprised in item 1 or a houseboat comprised in item 2.
Note:
This Group does not include—
(a) removable contents other than goods of a kind mentioned in item 4 of Group 5; or
(b) the supply of accommodation in a caravan or houseboat.
Group 10— Gold
Item No.
1 The supply, by a Central Bank to another Central Bank or a member of the London Gold Market, of gold held in the United Kingdom.
2 The supply, by a member of the London Gold Market to a Central Bank, of gold held in the United Kingdom.
Notes:
(1) “Gold” includes gold coins.
(2) Section 30(3) does not apply to goods forming part of a description of supply in this Group.
(3) Items 1 and 2 include—
(a) the granting of a right to acquire a quantity of gold; and
(b) any supply described in those items which by virtue of paragraph 1 of Schedule 4 is a supply of services.
Group 11— Bank notes
Item No.
1 The issue by a bank of a note payable to bearer on demand.
Group 12— Drugs, medicines, aids for the disabled, etc.
Item No.
1 The supply of any qualifying goods dispensed to an individual for that individual’s personal use on the prescription of an appropriate practitioner where the dispensing is—
(a) by a registered pharmacist, or
(b) in accordance with a requirement or authorisation under a relevant provision.
1A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2 The supply to a disabled person for domestic or his personal use, or to a charity for making available to disabled persons by sale or otherwise, for domestic or their personal use, of—
(a) medical or surgical appliances designed solely for the relief of a severe abnormality or severe injury;
(b) electrically or mechanically adjustable beds designed for invalids;
(c) commode chairs, commode stools, devices incorporating a bidet jet and warm air drier and frames or other devices for sitting over or rising from a sanitary appliance;
(d) chair lifts or stair lifts designed for use in connection with invalid wheelchairs;
(e) hoists and lifters designed for use by invalids;
(f) motor vehicles designed or substantially and permanently adapted for the carriage of a person in a wheelchair or on a stretcher and of no more than 11 other persons;
(g) equipment and appliances not included in paragraphs (a) to (f) above designed solely for use by a disabled person;
(h) parts and accessories designed solely for use in or with goods described in paragraphs (a) to (g) above;
(i) boats designed or substantially and permanently adapted for use by disabled persons.
2A (1) The supply of a motor vehicle (other than a motor vehicle capable of carrying more than 12 persons including the driver) to a person (“P”) if—
(a) the motor vehicle is a qualifying motor vehicle by virtue of paragraph (2) or (3),
(b) P is a disabled person to whom paragraph (4) applies, and
(c) the vehicle is supplied for domestic or P's personal use.
(2) A motor vehicle is a “qualifying motor vehicle” by virtue of this paragraph if it is designed to enable a person to whom paragraph (4) applies to travel in it.
(3) A motor vehicle is a “qualifying motor vehicle” by virtue of this paragraph if—
(a) it has been substantially and permanently adapted to enable a person to whom paragraph (4) applies to travel in it, and
(b) the adaptation is necessary to enable P to travel in it.
(4) This paragraph applies to a disabled person—
(a) who usually uses a wheelchair, or
(b) who is usually carried on a stretcher.
2B (1) The supply of a qualifying motor vehicle (other than a motor vehicle capable of carrying more than 12 persons including the driver) to a charity for making available, by sale or otherwise to a person to whom paragraph (3) applies, for domestic or the person's personal use.
(2) A motor vehicle is a “qualifying motor vehicle” for the purposes of this item if it is designed or substantially and permanently adapted to enable a disabled person to whom paragraph (3) applies to travel in it.
(3) This paragraph applies to a disabled person—
(a) who usually uses a wheelchair, or
(b) who is usually carried on a stretcher.
3 The supply to a disabled person of services of adapting goods to suit his condition.
4 The supply to a charity of services of adapting goods to suit the condition of a disabled person to whom the goods are to be made available, by sale or otherwise, by the charity.
5 The supply to a disabled person or to a charity of a service of repair or maintenance of any goods specified in item 2, 2A, 6, 18 or 19 and supplied as described in that item.
6 The supply of goods in connection with a supply described in item 3, 4 or 5.
7 The supply to a disabled person or to a charity of services necessarily performed in the installation of equipment or appliances (including parts and accessories therefor) specified in item 2 and supplied as described in that item.
8 The supply to a disabled person of a service of constructing ramps or widening doorways or passages for the purpose of facilitating his entry to or movement within his private residence.
9 The supply to a charity of a service described in item 8 for the purpose of facilitating a disabled person’s entry to or movement within any building.
10 The supply to a disabled person of a service of providing, extending or adapting a bathroom, washroom or lavatory in his private residence where such provision, extension or adaptation is necessary by reason of his condition.
11 The supply to a charity of a service of providing, extending or adapting a bathroom, washroom or lavatory for use by disabled persons—
(a) in residential accommodation, or
(b) in a day-centre where at least 20 per cent. of the individuals using the centre are disabled persons,
where such provision, extension or adaptation is necessary by reason of the condition of the disabled persons.
12 The supply to a charity of a service of providing, extending or adapting a washroom or lavatory for use by disabled persons in a building, or any part of a building, used principally by a charity for charitable purposes where such provision, extension or adaptation is necessary to facilitate the use of the washroom or lavatory by disabled persons.
13 The supply of goods in connection with a supply described in items 8, 9, 10 or 11.
14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15 (1) The sale of a motor vehicle that had been let on hire on relevant benefit terms, where such sale constitutes the first supply of the vehicle after the end of the period of such letting.
(2) A vehicle has been let on hire on relevant benefit terms if—
(a) the letting on hire was to a disabled person in receipt of—
(i) a relevant disability benefit by virtue of entitlement to the mobility component of that benefit,
(ii) an armed forces independence payment, or
(iii) mobility supplement,
(b) the letting was for a period of not less than 3 years,
(c) the vehicle was unused at the commencement of the period of letting, and
(d) the consideration for the letting consists wholly or partly of sums paid to the lessor by a relevant authority on behalf of the lessee in respect of—
(i) the mobility component of a relevant disability benefit,
(ii) armed forces independence payment, or
(iii) mobility supplement.
(3) For the purposes of paragraph (2)—
“relevant authority” means—
the Department for Work and Pensions,
the Ministry of Defence,
the Scottish Ministers, or
the Department for Communities in Northern Ireland;
“relevant disability benefit” means—
disability living allowance,
personal independence payment,
Child Disability Payment,
Adult Disability Payment, or
Scottish Adult Disability Living Allowance.
16 The supply to a disabled person of services necessarily performed in the installation of a lift for the purpose of facilitating his movement between floors within his private residence.
17 The supply to a charity providing a permanent or temporary residence or day-centre for disabled persons of services necessarily performed in the installation of a lift for the purpose of facilitating the movement of disabled persons between floors within that building.
18 The supply of goods in connection with a supply described in item 16 or 17.
19 The supply to a disabled person for domestic or his personal use, or to a charity for making available to disabled persons by sale or otherwise for domestic or their personal use, of an alarm system designed to be capable of operation by a disabled person, and to enable him to alert directly a specified person or a control centre.
20 The supply of services necessarily performed by a control centre in receiving and responding to calls from an alarm system specified in item 19.
Notes:
(1) Section 30(3) does not apply to goods forming part of a description of supply in item 1 ..., nor to other goods forming part of a description of supply in this Group, except where those other goods are ... imported ... by a disabled person for domestic or his personal use, or by a charity for making available to disabled persons, by sale or otherwise, for domestic or their personal use.
(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2A) In item 1, “qualifying goods” means any goods designed or adapted for use in connection with any medical or surgical treatment except—
(a) hearing aids;
(b) dentures; and
(c) spectacles and contact lenses.
(2B) In item 1 “appropriate practitioner” means—
(a) a registered medical practitioner;
(b) a person registered in the dentists’ register under the Dentists Act 1984;
(ba) an approved country health professional within the meaning given by regulation 213 of the Human Medicines Regulations 2012;
(c) a community practitioner nurse prescriber;
(ca) an EEA health professional within the meaning given by regulation 213 of the Human Medicines Regulations 2012;
(d) a nurse independent prescriber;
(e) an optometrist independent prescriber;
(f) a pharmacist independent prescriber;
(fa) a physiotherapist independent prescriber;
(fb) a podiatrist independent prescriber;
(g) a supplementary prescriber.
For the purposes of this Note “community practitioner nurse prescriber”, “nurse independent prescriber”, “optometrist independent prescriber”, “pharmacist independent prescriber” , “physiotherapist independent prescriber”, “podiatrist independent prescriber” and “supplementary prescriber” have the meanings given in regulation 8(1) of the Human Medicines Regulations 2012.
(2C) In item 1 “registered pharmacist” means a person who is—
(a) registered in the Register of Pharmacists maintained under the Pharmacists and Pharmacy Technicians Order 2007, or
(b) registered in the register of pharmaceutical chemists kept under the Pharmacy (Northern Ireland) Order 1976.
(2D) In item 1 “relevant provision” means—
(a) article 57 of the Health and Personal Social Services (Northern Ireland) Order 1972;
(b) regulation 20 of the National Health Service (Pharmaceutical Services) Regulations 1992;
(c) regulation 12 of the Pharmaceutical Services Regulations (Northern Ireland) 1997;
(d) paragraph 44 of Schedule 5 to the National Health Service (General Medical Services Contracts) (Scotland) Regulations 2004;
(e) paragraph 15 of Schedule 1 to the National Health Service (Primary Medical Services Section 17C Agreements) (Scotland) Regulations 2004;
(f) paragraphs 47 and 49 of Schedule 6 to the National Health Service (General Medical Services Contracts) Regulations 2004;
(g) paragraph 44 of Schedule 5 to the Health and Personal Social Services (General Medical Services Contracts) Regulations (Northern Ireland) 2004;
(h) paragraphs 46, 48 and 49 of Schedule 5 to the National Health Service (Personal Medical Services Agreements) Regulations 2004;
(i) paragraph 47 of Schedule 6 to the National Health Service (General Medical Services Contracts) (Wales) Regulations 2004;
(j) regulation 60 of the National Health Service (Pharmaceutical Services) Regulations 2005.
(3) Any person who is chronically sick or disabled is “disabled” for the purposes of this Group.
(4) Item 2 shall not include hearing aids (except hearing aids designed for the auditory training of deaf children), dentures, spectacles and contact lenses but shall be deemed to include—
(a) clothing, footwear and wigs;
(b) invalid wheelchairs, and invalid carriages . . .; and
(c) renal haemodialysis units, oxygen concentrators, artificial respirators and other similar apparatus.
(5) The supplies described in items 1 ... and , 2 and 2A include supplies of services of letting on hire of the goods respectively comprised in those items.
(5A) In item 1 the reference to personal use does not include any use which is, or involves, a use by or in relation to an individual while that individual, for the purposes of being provided (whether or not by the person making the supply) with medical or surgical treatment, or with any form of care—
(a) is an in-patient or resident in a relevant institution which is a hospital or nursing home; or
(b) is attending at the premises of a relevant institution which is a hospital or nursing home.
(5B) Subject to Notes (5C) and (5D), in item 2 the reference to domestic or personal use does not include any use which is, or involves, a use by or in relation to a disabled person while that person, for the purposes of being provided (whether or not by the person making the supply) with medical or surgical treatment, or with any form of care—
(a) is an in-patient or resident in a relevant institution; or
(b) is attending at the premises of a relevant institution.
(5C) Note (5B) does not apply for the purpose of determining whether any of the following supplies falls within item 2, that is to say—
(a) a supply to a charity;
(b) a supply by a person mentioned in any of paragraphs (a) to (g) of Note (5H) of an invalid wheelchair or invalid carriage;
(c) a supply by a person so mentioned of any parts or accessories designed solely for use in or with an invalid wheelchair or invalid carriage.
(5D) Note (5B) applies for the purpose of determining whether a supply of goods by a person not mentioned in any of paragraphs (a) to (g) of Note (5H) falls within item 2 only if those goods are—
(a) goods falling within paragraph (a) of that item;
(b) incontinence products and wound dressings; or
(c) parts and accessories designed solely for use in or with goods falling within paragraph (a) of this Note.
(5E) Subject to Note (5F), item 2 does not include—
(a) a supply made in accordance with any agreement, arrangement or understanding (whether or not legally enforceable) to which any of the persons mentioned in paragraphs (a) to (g) of Note (5H) is or has been a party otherwise than as the supplier; or
(b) any supply the whole or any part of the consideration for which is provided (whether directly or indirectly) by a person so mentioned.
(5F) A supply to a disabled person of an invalid wheelchair or invalid carriage is excluded from item 2 by Note (5E) only if—
(a) that Note applies in relation to that supply by reference to a person falling within paragraph (g) of Note (5H); or
(b) the whole of the consideration for the supply is provided (whether directly or indirectly) by a person falling within any of paragraphs (a) to (f) of Note (5H).
(5G) In Notes (4), (5C) and (5F), the references to an invalid wheelchair and to an invalid carriage do not include references to any mechanically propelled vehicle which is intended or adapted for use on roads.
(5H) The persons referred to in Notes (5C) to (5F) are—
(a) NHS England or a Special Health Authority in England;
(aa) a Health Authority, Special Health Authority or Local Health Board in Wales;
(b) a Health Board or Special Health Board in Scotland;
(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(d) the Common Services Agency for the Scottish Health Service, the Regional Business Services Organisation established under section 14 of the Health and Social Care (Reform) Act (Northern Ireland) 2009 and the Isle of Man Department of Health and Social Care;
(e) a National Health Service trust established under the National Health Service Act 2006 or the National Health Service (Wales) Act 2006 or the National Health Service (Scotland) Act 1978 ;
(eaa) an NHS foundation trust;
(ea) an integrated care board established under section 14Z25 of the National Health Service Act 2006;
(f) a Health and Social Care trust established under the Health and Personal Social Services (Northern Ireland) Order 1991; or
(g) any person not falling within any of paragraphs (a) to (f) above who is engaged in the carrying on of any activity in respect of which a relevant institution is required to be approved, licensed or registered or as the case may be, would be so required if not exempt.
(5I) In Notes (5A), (5B) and (5H), “relevant institution” means any institution (whether a hospital, nursing home or other institution) which provides care or medical or surgical treatment and is either—
(a) approved, licensed or registered in accordance with the provisions of any enactment or Northern Ireland legislation; or
(b) exempted by or under the provisions of any enactment or Northern Ireland legislation from any requirement to be approved, licensed or registered;,
and in this Note the references to the provisions of any enactment or Northern Ireland legislation include references only to provisions which, so far as relating to England, Wales, Scotland or Northern Ireland, have the same effect in every locality within that part of the United Kingdom.
(5J) For the purposes of item 11 “residential accommodation” means—
(a) a residential home, or
(b) self-contained living accommodation,
provided as a residence (whether on a permanent or temporary basis or both) for disabled persons, but does not include an inn, hotel, boarding house or similar establishment or accommodation in any such type of establishment.
(5K) In this Group “washroom” means a room that contains a lavatory or washbasin (or both) but does not contain a bath or a shower or cooking, sleeping or laundry facilities.
(5L) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5M) For the purposes of Notes (5N) to (5S), the supply of a motor vehicle is a “relevant supply” if it is a supply of goods (which is made in the United Kingdom).
(5N) In the case of a relevant supply of a motor vehicle to a disabled person (“the new supply”), items 2(f) and 2A do not apply if, in the period of 3 years ending with the day on which the motor vehicle is made available to the disabled person—
(a) a reckonable zero-rated supply of another motor vehicle has been made to that person, or
(b) that person has made a ... reckonable zero-rated importation, of another motor vehicle.
(5O) If a relevant supply of a motor vehicle is made to a disabled person and—
(a) any reckonable zero-rated supply of another motor vehicle has previously been made to the person, or
(b) any reckonable zero-rated ... importation of another motor vehicle has previously been made by the person,
the reckonable zero-rated supply or (as the case may be) reckonable zero-rated importation ... is treated for the purposes of Note (5N) as not having been made if either of the conditions in Note (5P) is met.
(5P) The conditions mentioned in Note (5O) are that—
(a) at the time of the new supply (see Note (5N)) the motor vehicle mentioned in Note (5O)(a) or (b) is unavailable for the disabled person's use because—
(i) it has been stolen, or
(ii) it has been destroyed or damaged beyond repair (accidentally, or otherwise in circumstances beyond the disabled person's control), or
(b) the Commissioners are satisfied that (at the time of the new supply) the motor vehicle mentioned in Note (5O)(a) or (b) has ceased to be suitable for the disabled person's use because of changes in the person's condition.
(5Q) In the case of a relevant supply of a motor vehicle to a disabled person, items 2(f) and 2A cannot apply unless the supplier—
(a) gives to the Commissioners, before the end of the period of 12 months beginning with the day on which the supply is made, any information and supporting documentary evidence that may be specified in a notice published by them, and
(b) in doing so complies with any requirements as to method set out in the notice.
(5R) In the case of a relevant supply of a motor vehicle to a disabled person, items 2(f) and 2A cannot apply unless, before the supply is made, the person making the supply has been given a certificate in the required form which—
(a) states that the supply will not fall within Note (5N), and
(b) sets out any other matters, and is accompanied by any supporting documentary evidence, that may be required under a notice published by the Commissioners for the purposes of this Note.
(5S) The information that may be required under Note (5Q)(a) includes—
(a) the name and address of the disabled person and details of the person's disability, and
(b) any other information that may be relevant for the purposes of that Note,
(and the matters that may be required under Note (5R)(b) include any information that may be required for the purposes of Note (5Q)).
(5T) In Notes (5N) to (5S)—
“in the required form” means complying with any requirements as to form that may be specified in a notice published by the Commissioners;
...
“reckonable zero-rated importation”, in relation to a motor vehicle, means an importation of the vehicle ... in a case where—
VAT is not chargeable on the importation as a result of item 2(f) or 2A, and
the importation takes place on or after 1 April 2017;
“reckonable zero-rated supply”, in relation to a motor vehicle, means a supply of the vehicle which—
is a supply of goods,
is zero-rated as a result of item 2(f) or 2A, and
is made on or after 1 April 2017.
(5U) In items 2A and 2B references to design, or adaptation, of a motor vehicle to enable a person (or a person of any description) to travel in it are to be read as including a reference to design or, as the case may be, adaptation of the motor vehicle to enable the person (or persons of that description) to drive it.
(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(7) In item 15—
(a) “disability living allowance” is a disability living allowance within the meaning of section 71 of the Social Security Contributions and Benefits Act 1992, or section 71 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992; ...
(aa) “personal independence payment” means a personal independence payment under Part 4 of the Welfare Reform Act 2012 or Part 5 of the Welfare Reform (Northern Ireland) Order 2015 ;
(aaa) “Child Disability Payment” means a category of disability assistance specifically for children and young people given in accordance with regulations made under section 31 of the Social Security (Scotland) Act 2018;
(aab) “Adult Disability Payment” means a category of disability assistance specifically for working age people given in accordance with regulations made under section 31 of the Social Security (Scotland) Act 2018;
(aac) “Scottish Adult Disability Living Allowance” means a category of disability assistance for adults given in accordance with regulations made under section 31 of the Social Security (Scotland) Act 2018;
(ab) “armed forces independence payment” means an armed forces independence payment under a scheme established under section 1 of the Armed Forces (Pensions and Compensation) Act 2004; and
(b) “mobility supplement” is a mobility supplement within the meaning of—
(i) Article 20 of the Naval, Military and Air Forces Etc. (Disablement and Death) Service Pensions Order 2006, or
(ii) Article 25A of the Personal Injuries (Civilians) Scheme 1983.
(8) Where in item 3 or 4 the goods are adapted in accordance with that item prior to their supply to the disabled person or the charity, an apportionment shall be made to determine the supply of services which falls within item 3 or 4.
(9) In item 19 or 20, a specified person or control centre is a person or centre who or which—
(a) is appointed to receive directly calls activated by an alarm system described in that item, and
(b) retains information about the disabled person to assist him in the event of illness, injury or similar emergency.
Group 13— Imports, exports etc.
Item No.
1 The supply of imported goods before a Customs declaration has been made under Part 1 of TCTA 2018 in respect of those goods where the supplier and the purchaser of the goods have agreed that the purchaser will make the Customs declaration.
2 The supply to or by an overseas authority, overseas body or overseas trader, charged with the management of any defence project which is the subject of an international collaboration arrangement or under direct contract with any government or government-sponsored international body participating in a defence project under such an arrangement, of goods or services in the course of giving effect to that arrangement.
3 The supply to an overseas authority, overseas body or overseas trader of jigs, patterns, templates, dies, punches and similar machine tools used in the United Kingdom solely for the manufacture of goods for export ....
Notes:
(1) An “international collaboration arrangement” means any arrangement which—
(a) is made between the United Kingdom Government and the government of one or more other countries, or any government-sponsored international body for collaboration in a joint project of research, development or production; and
(b) includes provision for participating governments to relieve the cost of the project from taxation.
(2) “Overseas authority” means any country other than the United Kingdom or any part of or place in such a country or the government of any such country, part or place.
(3) “Overseas body” means a body established outside the United Kingdom.
(4) “Overseas trader” means a person who carries on a business and has his principal place of business outside the United Kingdom.
(5) Item 3 does not apply where the overseas authority, overseas body or overseas trader is a taxable person....
Group 14— Tax-free shops
Notes:
(1) For the purpose of determining the aggregate value of any goods referred to in Item 1(a) only the whole of the value of any item, or group of items which are normally sold as a set or collection, may be included in the aggregate value of £75.
(2) “Tax free shop” means any shop which is situated within an airport, port or Channel Tunnel terminal and which is approved by the Commissioners for the supply of goods for the purposes of this Group, and in this note “Channel Tunnel terminal” means the area situated in the vicinity of Cheriton, Folkestone referred to in section 1(7)(b) of the Channel Tunnel Act 1987.
(3) “Relevant journey” means a journey by air or sea from the United Kingdom to a place in another member State where the traveller is to disembark and includes, for the purposes of Item 1, a journey by a Channel Tunnel shuttle train.
(4) “Traveller” means any passenger travelling under a transport document for air or sea travel stating that the immediate destination is a place in another member State (including such a transport document stating that the final destination is a place outside the member States) or for shuttle train travel.
(5) Items 1 and 2 do not apply where the supply is to a traveller under 17 years of age of goods falling within Item 1(b), other than perfumes and toilet waters.
(6) In these Notes “shuttle train” has the meaning given by section 1(9) of the Channel Tunnel Act 1987.
Group 15— Charities etc.
1 The sale, or letting on hire, by a charity of any goods donated to it for—
(a) sale,
(b) letting,
(c) sale or letting,
(d) sale or export,
(e) letting or export, or
(f) sale, letting or export.
1A The sale, or letting on hire, by a taxable person of any goods donated to him for—
(a) sale,
(b) letting,
(c) sale or letting,
(d) sale or export,
(e) letting or export, or
(f) sale, letting or export,
if he is a profits-to-charity person in respect of the goods.
2 The donation of any goods for any one or more of the following purposes—
(a) sale by a charity or a taxable person who is a profits-to-charity person in respect of the goods;
(b) export by a charity or such a taxable person;
(c) letting by a charity or such a taxable person.
3 The export of any goods by a charity ....
4 The supply of any relevant goods for donation to a nominated eligible body where the goods are purchased with funds provided by a charity or from voluntary contributions.
5 The supply of any relevant goods to an eligible body which pays for them with funds provided by a charity or from voluntary contributions or to an eligible body which is a charitable institution providing care or medical or surgical treatment for disabled persons.
6 Repair and maintenance of relevant goods owned by an eligible body.
7 The supply of goods in connection with the supply described in item 6.
8 The supply to a charity of a right to promulgate an advertisement by means of a medium of communication with the public.
8A A supply to a charity that consists in the promulgation of an advertisement by means of such a medium.
8B The supply to a charity of services of design or production of an advertisement that is, or was intended to be, promulgated by means of such a medium.
8C The supply to a charity of goods closely related to a supply within item 8B.
9 The supply to a charity, providing care or medical or surgical treatment for human beings or animals, or engaging in medical or veterinary research, of a medicinal product or veterinary medicinal product where the supply is solely for use by the charity in such care, treatment or research.
10 The supply to a charity of a substance directly used for synthesis or testing in the course of medical or veterinary research.
Notes:
(1) Item 1 or 1A does not apply unless the sale or letting—
(a) takes place as a result of the goods having been made available—
(i) to two or more specified persons, or
(ii) to the general public,
for purchase or hire (whether so made available in a shop or elsewhere), and
(b) does not take place as a result of any arrangements (whether legally binding or not) relating to the goods and entered into, before the goods were made so available, by—
(i) each of the parties to the sale or letting, or
(ii) the donor of the goods and either or both of those parties.
(1A) For the purposes of items 1, 1A and 2, goods are donated for letting only if they are donated for—
(a) letting, and
(b) re-letting after the end of any first or subsequent letting, and
(c) all or any of—
(i) sale,
(ii) export, or
(iii) disposal as waste,
if not, or when no longer, used for letting.
(1B) Items 1 and 1A do not include (and shall be treated as having not included) any sale, or letting on hire, of particular donated goods if the goods, at any time after they are donated but before they are sold, exported or disposed of as waste, are whilst unlet used for any purpose other than, or in addition to, that of being available for purchase, hire or export.
(1C) In Note (1) “specified person” means a person who—
(a) is disabled, or
(b) is entitled to any one or more of the specified benefits, or
(c) is both disabled and so entitled.
(1D) For the purposes of Note (1C) the specified benefits are—
(a) income support under Part VII of the Social Security Contributions and Benefits Act 1992 or Part VII of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 ;
(b) housing benefit under Part VII of the Social Security Contributions and Benefits Act 1992 or Part VII of the Social Security Contributions and Benefits (Northern Ireland) Act 1992;
(c) council tax benefit under Part VII of the Social Security Contributions and Benefits Act 1992;
(d) an income-based jobseeker’s allowance within the meaning of section 1(4) of the Jobseekers Act 1995 or article 3(4) of the Jobseekers (Northern Ireland) Order 1995 ;
(e) any element of child tax credit other than the family element; ...
(f) working tax credit. and
(g) universal credit under Part 1 of the Welfare Reform Act 2012 or Part 2 of the Welfare Reform (Northern Ireland) Order 2015.
(1E) For the purposes of items 1A and 2 a taxable person is a “profits-to-charity” person in respect of any goods if—
(a) he has agreed in writing (whether or not contained in a deed) to transfer to a charity his profits from supplies and lettings of the goods, or
(b) his profits from supplies and lettings of the goods are otherwise payable to a charity.
(1F) In items 1, 1A and 2, and any Notes relating to any of those items, “goods” means goods (and, in particular, does not include anything that is not goods even though provision made by or under an enactment provides for a supply of that thing to be, or be treated as, a supply of goods).
(2) “Animals” includes any species of the animal kingdom.
(3) “Relevant goods” means—
(a) medical, scientific, computer, video, sterilising, laboratory or refrigeration equipment for use in medical or veterinary research, training, diagnosis or treatment;
(b) ambulances;
(c) parts or accessories for use in or with goods described in paragraph (a) or (b) above;
(d) goods of a kind described in item 2 of Group 12 of this Schedule;
(e) motor vehicles (other than vehicles with more than 50 seats) designed or substantially and permanently adapted for the safe carriage of a disabled person in a wheelchair provided that—
(i) in the case of vehicles with more than 16 but fewer than 27 seats, the number of persons for which such provision shall exist shall be at least 2;
(ii) in the case of vehicles with more than 26 but fewer than 37 seats, the number of persons for which such provision shall exist shall be at least 3;
(iii) in the case of vehicles with more than 36 but fewer than 47 seats, the number of persons for which such provision shall exist shall be at least 4;
(iv) in the case of vehicles with more than 46 seats, the number of persons for which such provision shall exist shall be at least 5;
(v) there is either a fitted electrically or hydraulically operated lift or, in the case of vehicles with fewer than 17 seats, a fitted ramp to provide access for a passenger in a wheelchair;
(f) motor vehicles (with more than 6 but fewer than 51 seats) for use by an eligible body providing care for blind, deaf, mentally disabled or terminally sick persons mainly to transport such persons;
(g) telecommunication, aural, visual, light enhancing or heat detecting equipment (not being equipment ordinarily supplied for private or recreational use) solely for use for the purpose of rescue or first aid services undertaken by a charitable institution providing such services.
(4) “Eligible body” means—
(a) NHS England or a Special Health Authority in England;
(aa) a Health Authority, Special Health Authority or Local Health Board in Wales;
(b) a Health Board in Scotland;
(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(d) a hospital whose activities are not carried on for profit;
(e) a research institution whose activities are not carried on for profit;
(f) a charitable institution providing care or medical or surgical treatment for disabled persons;
(g) the Common Services Agency for the Scottish Health Service, the Regional Business Services Organisation established under section 14 of the Health and Social Care (Reform) Act (Northern Ireland) 2009 or the the Isle of Man Department of Health and Social Care;
(h) a charitable institution providing rescue or first-aid services;
(i) a National Health Service trust established under Part I of the National Health Service and Community Care Act 1990 or the National Health Service (Scotland) Act 1978.
(j) an integrated care board established under section 14Z25 of the National Health Service Act 2006.
(4A) Subject to Note (5B), a charitable institution shall not be regarded as providing care or medical or surgical treatment for disabled persons unless—
(a) it provides care or medical or surgical treatment in a relevant establishment; and
(b) the majority of the persons who receive care or medical or surgical treatment in that establishment are disabled persons.
(4B) “Relevant establishment” means—
(a) a day-centre, other than a day-centre which exists primarily as a place for activities that are social or recreational or both; or
(b) an institution which is—
(i) approved, licensed or registered in accordance with the provisions of any enactment or Northern Ireland legislation; or
(ii) exempted by or under the provisions of any enactment or Northern Ireland legislation from any requirement to be approved, licensed or registered;
and in paragraph (b) above the references to the provisions of any enactment or Northern Ireland legislation are references only to provisions which, so far as relating to England, Wales, Scotland or Northern Ireland, have the same effect in every locality within that part of the United Kingdom.
(5) Any person who is chronically sick or disabled is “disabled” for the purposes of this Group.
(5A) Subject to Note (5B), items 4 to 7 do not apply where the eligible body falls within Note (4)(f) unless the relevant goods are or are to be used in a relevant establishment in which that body provides care or medical or surgical treatment to persons the majority of whom are disabled.
(5B) Nothing in Note (4A) or (5A) shall prevent a supply from falling within items 4 to 7 where—
(a) the eligible body provides medical care to disabled persons in their own homes;
(b) the relevant goods fall within Note (3)(a) or are parts or accessories for use in or with goods described in Note (3)(a); and
(c) those goods are or are to be used in or in connection with the provision of that care.
(6) Item 4 does not apply where the donee of the goods is not a charity and has contributed in whole or in part to the funds for the purchase of the goods.
(7) Item 5 does not apply where the body to whom the goods are supplied is not a charity and has contributed in whole or in part to the funds for the purchase of the goods.
(8) Items 6 and 7 do not apply unless—
(a) the supply is paid for with funds which have been provided by a charity or from voluntary contributions, and
(b) in a case where the owner of the goods repaired or maintained is not a charity, it has not contributed in whole or in part to those funds.
(9) Items 4 and 5 include the letting on hire of relevant goods; accordingly in items 4, 5 and 6 and the notes relating thereto, references to the purchase or ownership of goods shall be deemed to include references respectively to their hiring and possession.
(10) Item 5 includes computer services by way of the provision of computer software solely for use in medical research, diagnosis or treatment.
(10A) Neither of items 8 and 8A includes a supply where any of the members of the public (whether individuals or other persons) who are reached through the medium are selected by or on behalf of the charity.
For this purpose “selected” includes selected by address (whether postal address or telephone number, e-mail address or other address for electronic communications purposes) or at random.
(10B) None of items 8 to 8C includes a supply used to create, or contribute to, a website that is the charity’s own.
For this purpose a website is a charity’s own even though hosted by another person.
(10C) Neither of items 8B and 8C includes a supply to a charity that is used directly by the charity to design or produce an advertisement.
(11) In item 9—
(a) “medicinal product” has the meaning assigned to it by regulation 2(1) of the Human Medicines Regulations 2012;
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(d) “veterinary medicinal product” has the meaning assigned to it by regulation 2 of the Veterinary Medicines Regulations 2006.
(12) In items 9 and 10 “substance” and “ingredient” have the meanings assigned to them by section 132 of the Medicines Act 1968.
Group 16— Clothing and footwear
Item No.
1 Articles designed as clothing or footwear for young children and not suitable for older persons.
2 The supply to a person for use otherwise than by employees of his of protective boots and helmets for industrial use.
3 Protective helmets for wear by a person driving or riding a motor bicycle or riding a pedal cycle.
Notes:
(1) “Clothing” includes hats and other headgear.
(2) Item 1 does not include articles of clothing made wholly or partly of fur skin, except—
(a) headgear;
(b) gloves;
(c) buttons, belts and buckles;
(d) any garment merely trimmed with fur skin unless the trimming has an area greater than one-fifth of the area of the outside material or, in the case of a new garment, represents a cost to the manufacturer greater than the cost to him of the other components.
(3) “Fur skin” means any skin with fur, hair or wool attached except—
(a) rabbit skin;
(b) woolled sheep or lamb skin; and
(c) the skin, if neither tanned nor dressed, of bovine cattle (including buffalo), equine animals, goats or kids (other than Yemen, Mongolian and Tibetan goats or kids), swine (including peccary), chamois, gazelles, deer or dogs.
(4) Item 2 applies only where the goods to which it refers are—
(a) goods which—
(i) are manufactured to standards approved by the British Standards Institution; and
(ii) bear a marking indicating compliance with the specification relating to such goods; or
(b) goods which—
(i) are manufactured to standards which satisfy the requirements of regulation 8(2) of the Personal Protective Equipment Regulations 2002, and
(ii) bear the mark of conformity required by that regulation.
(4A) Item 3 does not apply to a protective helmet unless—
(a) it is of a type that on 30th June 2000 is prescribed by regulations made under section 17 of the Road Traffic Act 1988 (types of helmet recommended as affording protection to persons on or in motor cycles from injury in the event of accident); or
(b) it is of a type that—
(i) is manufactured to standards which satisfy the requirements of regulation 8(2) of the Personal Protective Equipment Regulations 2002, and
(ii) bears the mark of conformity required by that regulation.
(5) Items 1, 2 and 3 include the supply of the services described in paragraphs 1(1) and 5(4) of Schedule 4 in respect of goods comprised in the items, but, in the case of goods comprised in item 2, only if the goods are for use otherwise than by employees of the person to whom the services are supplied.
GROUP 17—EMISSIONS ALLOWANCES
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
GROUP 18 — EUROPEAN RESEARCH INFRASTRUCTURE CONSORTIA
Item No.
1. The supply of goods or services to an ERIC.
NOTES
(1) “ERIC” means a body set up as a European Research Infrastructure Consortium by a decision under Article 6(1)(a) of Council Regulation (EC) No 723/2009 on the Community legal framework for a European Research Infrastructure Consortium.
(2) Item 1 applies only where the following requirements are met—
(a) the statutory seat of the ERIC referred to in Article 8(1) of Council Regulation (EC) No 723/2009 is located in the United Kingdom, a member State or an associated country (within the meaning given by Article 2(c) of that Regulation);
(b) the goods or services are for the official use of the ERIC;
(c) a certificate in writing has been given to the supplier on behalf of the ERIC that—
(i) the requirements in paragraphs (a) and (b) are met in relation to the supply, and
(ii) the relief is not precluded by the limitations and conditions referred to in Note (3); and
(d) VAT would have been chargeable on the supply but for item 1.
(3) Item 1 is subject to the limitations and conditions laid down in the agreement between the members of the ERIC referred to in Article 5(1)(d) of Council Regulation (EC) No 723/2009.
Group 19 - women's sanitary products
Item No.
1 The supply of women's sanitary products.
NOTES
(1) In this Group “women's sanitary products” means women's sanitary products of any of the following descriptions—
(a) subject to Note (2), products that are designed, and marketed, as being solely for use for absorbing, or otherwise collecting, lochia or menstrual flow;
(b) panty liners, other than panty liners that are designed as being primarily for use as incontinence products;
(c) sanitary belts;
(d) reusable underwear that is designed, and marketed, as being primarily for use for absorbing, or otherwise collecting, lochia or menstrual flow.
(2) Note (1)(a) does not include protective briefs or any other form of clothing.
Group 20—Personal Protective Equipment (Coronavirus)
Item No.
1. The supply of equipment to provide protection from infection where the supply is made in the period beginning with 1st May 2020 and ending with 31st October 2020.
NOTES
(1) In this Group “equipment to provide protection from infection” means personal protective equipment recommended for use in connection with protection from infection with coronavirus in guidance published by Public Health England on 24th April 2020 titled “Guidance, COVID-19 personal protective equipment (PPE)” namely—
(a) disposable gloves,
(b) disposable plastic aprons,
(c) disposable fluid-resistant coveralls or gowns,
(d) surgical masks (including fluid-resistant type IIR surgical masks),
(e) filtering face piece respirators, and
(f) eye and face protection (including single or reusable full face visors or goggles).
(2) Item 1 does not include—
(a) any of the supplies described in Group 12 or Group 15 of this Schedule, or
(b) any of the supplies that would be exempt by virtue of Group 7 of Schedule 9.
(3) In this Group “coronavirus” means severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2).
GROUP 21 ONLINE MARKETPLACES (DEEMED SUPPLY)
Item No.
1 A supply by a person established outside the United Kingdom that is deemed to be a supply to an operator of an online marketplace by virtue of section 5A, provided that the supply does not involve the goods being imported for the purposes of that section.
GROUP 22 FREE ZONES
Item No
1. The supply by one free zone business (“A”) to another free zone business (“B”) of—
(a) free zone procedure goods, if—
(i) the supply of the goods would (apart from this provision) be taxable but not zero-rated, and
(ii) A was authorised to make the supply;
(b) a service wholly performed in the free zone on or in relation to free zone procedure goods by a person authorised to do so, if—
(i) the supply of the service would (apart from this provision) be taxable but not zero-rated, and
(ii) before a VAT invoice is issued in respect of the supply, B notifies A in writing that this provision applies to the supply.
NOTES
(1) “Free zone business” means a person who is—
(a) authorised to declare goods for a free zone procedure or to carry out a free zone activity, and
(b) registered under this Act or exempted from registration under paragraph 13 of Schedule 1A to this Act.
(2) References to a person authorised to do a thing are references to a person authorised in accordance with the Special Procedures Regulations to do that thing.
(3) “Special Procedures Regulations” means the Customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018.
(4) “Free zone activity” and “free zone procedure” have the meanings given by the Special Procedures Regulations.
(5) Goods are “free zone procedure goods” if they—
(a) are subject to a free zone procedure, or
(b) comprise goods within paragraph (a) that have been combined with domestic goods by a person authorised to do so.
(6) “Domestic goods” has the meaning given by section 33 of the Taxation (Cross-border Trade) Act 2018.
(7) “Free zone” means an area in the United Kingdom designated as a special area for customs purposes under section 100A of the Management Act.
GROUP 23 INSTALLATION OF ENERGY-SAVING MATERIALS IN ENGLAND AND WALES AND SCOTLAND FROM 1 APRIL 2022 TO 31 MARCH 2027 , and in Northern Ireland from 1st May 2023 to 31st March 2027
Item No
1. Relevant supplies of services of installing energy-saving materials in —
(a) residential accommodation, or
(b) a building intended for use solely for a relevant charitable purpose.....
2. Relevant supplies of energy-saving materials by a person who installs those materials in —
(a) residential accommodation, or
(b) a building intended for use solely for a relevant charitable purpose.....
NOTES:
Meaning of “energy-saving materials”
1. (1) For the purposes of this Group “energy saving materials” means any of the following—
(a) insulation for walls, floors, ceilings, roofs or lofts or for water tanks, pipes or other plumbing fittings;
(b) draught stripping for windows and doors;
(c) central heating system controls (including thermostatic radiator valves);
(d) hot water system controls;
(e) solar panels;
(f) wind turbines;
(g) water turbines;
(h) ground source heat pumps;
(i) air source heat pumps;
(ia) water source heat pumps;
(j) micro combined heat and power units;
(k) boilers designed to be fuelled solely by wood, straw or similar vegetal matter.
(l) electrical storage batteries within sub-paragraph (2);
(m) smart diverters.
(2) An electrical storage battery is within this sub-paragraph if it is intended for use solely for storing energy converted from electricity that was—
(a) supplied to the residential accommodation or building in question, or
(b) generated by a microgeneration system.
(3) In sub-paragraph (2), “supplied” is to be construed in accordance with Part 1 of the Electricity Act 1989 (see section 64(1) of that Act).
(4) In sub-paragraph (1)(m), “smart diverter” means a device capable of automatically diverting electricity generated by a microgeneration system to one or more appliances, in particular circumstances.
(5) In sub-paragraphs (2) and (4), “microgeneration system” means equipment—
(a) that generates electricity, and
(b) that is itself an energy-saving material for the purposes of this Group.
Meaning of “residential accommodation”
2. (1) For the purposes of this Group “residential accommodation” means —
(a) a building, or part of a building, that consists of a dwelling or a number of dwellings;
(b) a building, or part of a building, used for a relevant residential purpose;
(c) a caravan used as a place of permanent habitation; or
(d) a houseboat.
(2) For the purposes of this Group “use for a relevant residential purpose” has the same meaning as it has for the purposes of Group 1 in Schedule 7A (see paragraph 7(1) of the Notes to that Group).
(3) In sub-paragraph (1)(d) “houseboat” has the meaning given by paragraph 7(3) of the Notes to Group 1 in Schedule 7A.
Meaning of “relevant supplies”
3. For the purposes of this Group “relevant supplies” means supplies made —
(a) where the residential accommodation is in England, Wales or Scotland, on or after 1st April 2022 and before 1st April 2027; and
(b) where the residential accommodation is in Northern Ireland, on or after 1st May 2023 and before 1st April 2027.
Installation of heat pumps
4 For the purposes of item 1, “installing energy-saving materials” includes carrying out groundworks, or dredging a body of water, in order to install pipework or other equipment necessary for the operation of a ground source heat pump or a water source heat pump.
Meaning of “use for a relevant charitable purpose”
5 For the purposes of this Group a building is used “for a relevant charitable purpose” if it is used by a charity—
(a) otherwise than in the course or furtherance of a business, or
(b) as a village hall or similarly in providing social or recreational facilities for a local community.