Commentary

V1.236 UK statutes and subordinate legislation

Part V1 General principles and rates of tax

V1.236 UK statutes and subordinate legislation

V1.236 UK statutes and subordinate legislation

Introduction

The statutory provisions concerning VAT are primarily derived from three separate sources—

  1.  

    (1)     legislation which is concerned directly with VAT, ie VATA 1994 and subordinate legislation;

  2.  

    (2)     the customs and excise Acts, which provide the statutory framework governing the imposition of tax on imported goods; and

  3.  

    (3)     the Commissioners for Revenue and Customs Act 2005.

Additional legislation concerning VAT is contained in—

  1.  

    (a)     the Postal Services Act 20001;

  2.  

    (b)     the Police and Criminal Evidence Act 1984; and

  3.  

    (c)     the Isle of Man Act 1979, which gives effect to the customs union between the UK and the Isle of Man.

These six sources are considered separately below. For the extent to which they are subordinated by directly applicable Community legislation, see V1.235.

Proposals for a new Management Act

There is no separate management act2 for VAT; most of the administrative provisions are contained within VATA 1994, although some appear in CEMA 1979, SI 1995/2518 and other legislation. HMRC announced3 the commencement of a project looking at the feasibility of a single Management Act covering the administration of VAT and certain direct taxes, namely—

  1.  

    (i)     Income Tax Self Assessment (including capital gains tax);

  2.  

    (ii)     Corporation Tax Self Assessment;

  3.  

    (iii)     Pay As You Earn and National Insurance Contributions as operated by employers; and

  4.  

    (iv)     National Insurance Contributions paid by the self-employed (Class 2 and 4 contributions).

Draft clauses covering notification, registration, returns and assessment were released4 for consultation on 28 November 2006. Comments were required by 20 February 2007. However,

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