The Value Added Tax (Buildings and Land) Order 1991

4.  Paragraph 3 of Schedule 6A to the Value Added Tax Act 1983 shall be amended as follows—

(a) in sub-paragraph (1), there shall be inserted at the beginning of paragraph (a) the words “subject to the following provisions of this paragraph,”;

(b) for sub-paragraph (6), there shall be substituted the following—

“(6) An election under paragraph 2 above shall be irrevocable and, except where it is an election of a description specified in a notice published by the Commissioners, shall not have effect unless—

(a) in a case to which sub-paragraph (10) below applies, the Commissioners have given the permission required under that subparagraph;

(b) in any other case, written notification of the election is given to the Commissioners not later than the end of the period of thirty days beginning with the day on which the election is made, or not later than the end of such longer period beginning with that day as the Commissioners may in any particular case allow, together with such information as the Commissioners may require.”;

(c) sub-paragraph (7) shall be omitted;

(d) after sub-paragraph (9), there shall be added the following sub-paragraph—

“(10) Where a person who wishes to make an election in relation to any land (the relevant land) to have effect on or after 1st January 1992, has made, makes or intends to make, an exempt grant in relation to the relevant land at any time between 1st August 1989 and before the beginning of the day from which he wishes an election in relation to the relevant land to have effect, he shall not make an election in relation to the relevant land unless he obtains the prior written permission of the Commissioners, who shall only give such permission if they are satisfied having regard to all the circumstances of the case and in particular to—

(a) the total value of exempt grants in relation to the relevant land made or to be made before the day from which the person wishes his election to have effect;

(b) the expected total value of grants relating to the relevant land that would be taxable if the election were to have effect; and

(c) the total amount of input tax which has been incurred on or after 1st August 1989 or is likely to be incurred in relation to the relevant land, the input tax mentioned in paragraph (c) above to grants in relation to the relevant land which, if the election were to have effect, would be taxable.”.