Commentary

RCB/49/10 VAT—proposals to simplify the “change in use” provisions

Part V16 Forms and other HMRC material

RCB/49/10 VAT—proposals to simplify the “change in use” provisions

RCB/49/10 VAT—proposals to simplify the “change in use” provisions

Revenue & Customs Brief, Issue 49. 6 December 2010

This Brief announces a four week consultation period to consider proposals to simplify the “change in use” provisions (paragraphs 35 to 37 of Part 2 of Schedule 10 to VATA 1994).

From the date of implementation, the legislation will no longer have two adjustment mechanisms (each with its own rules on how to calculate and apply a tax charge) to apply to the two sets of circumstances where a “change in use” occurs.

Instead, there will be a single adjustment mechanism to be applied in all circumstances. It will be based on the:

  1.  

    —     amount of VAT that would have been chargeable on the original supply (or supplies) had the building in question not been eligible for the zero rate

  2.  

    —     proportion of the building that is affected by the change in use

  3.  

    —     number of complete years that the building has been used solely for a qualifying purpose prior to the change in use.

What is the purpose of the

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial