Effect of the option to tax: exempt supplies become taxableU.K.
[F12.(1)This paragraph applies if—
(a)a person exercises the option to tax any land under this Part of this Schedule, and
(b)a grant is made in relation to the land at any time when the option to tax it has effect.
(2)If the grant is made—
(a)by the person exercising that option, or
(b)by a relevant associate (if that person is a body corporate),
the grant does not fall within Group 1 of Schedule 9 (exemptions for land).
(3)For the meaning of “relevant associate”, see paragraph 3.]
Textual Amendments
F1Sch. 10 substituted (with effect in accordance with art. 1(2) of the amending S.I.) by The Value Added Tax (Buildings and Land) Order 2008 (S.I. 2008/1146), arts. 1(1), 2 (with Sch. 2)