Anti-avoidance ― listed schemes ― pre-1 January 2018

By Tolley
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The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • Anti-avoidance ― listed schemes ― pre-1 January 2018
  • Listed schemes

This guidance note provides details of the listed schemes which need to be disclosed to HMRC. This note should be read in conjunction with the Anti-avoidance - introduction, Anti-avoidance - hallmark schemes and Anti-avoidance - analysis of relevant case law guidance notes.

Listed schemes

This section provides an overview of the current listed schemes. Please note that HMRC can amend this list if required to include additional schemes.

VATA 1994, Schedule 11A; The Finance (No. 2) Act 2005, section 6, (Appointed Day and Savings Provisions) Order 2005 (SI 2005/2010); The VAT (Disclosure of Avoidance Schemes) (Designations) Order 2004 (SI 2004/1933) (as amended by The VAT (Disclosure of Avoidance Schemes) (Designations) (Amendment) Order 2005 (SI 2005/1724); The VAT (Disclosure of Avoidance Schemes) Regulations 2004 (SI 2004/1929) (as amended by The VAT (Disclosure of Avoidance Schemes) (Amendment) Regulations 2005 (SI 2005/2009); De Voil V5.213; V2.210; V3.407; VAT Notice 700/8 
Scheme 1 - the first grant of a major interest in a building

This scheme is intended to reduce the amount of irrecoverable VAT incurred in relation to enlarging, extending, repairing, refurbishing and servicing buildings that are zero-rated when they are sold by a developer.

The scheme has the following features:

  • a major interest in granted in respect of the building is made to a connected person at the zero-rate of VAT (see the Zero-rating the construction of a new building)
  • the following additional input has been recovered as it has been attributed to the zero-rated grant:
    • input tax in respect of any service charges levied in respect of the building
    • input tax that is connected to the extension, enlargement, maintenance, refurbishment, repair of the building. However, input tax will not be deducted on remedying any

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