SCHEDULES
F1SCHEDULE 10 BUILDINGS AND LAND
PART 1THE OPTION TO TAX LAND
Scope of the option, its duration, notification etc
22Real estate elections: supplementary
1
This paragraph applies if, at any time (“the relevant time”), a person (E) makes a real estate election under paragraph 21.
2
An option to tax exercised in relation to any building or part of any building before the relevant time by—
a
E, or
b
any relevant group member,
is treated for the purposes of this Part of this Schedule as if it had been revoked from the relevant time if, at that time, neither E nor any relevant group member has a relevant interest in that building.
3
An option to tax exercised in relation to any land (otherwise than by reference to any building or part of a building) before the relevant time by—
a
E, or
b
any relevant group member,
is treated for the purposes of this Part of this Schedule as if it had been revoked in accordance with sub-paragraph (4) from the relevant time if, at that time, neither E nor any relevant group member has a relevant interest in that land, or E or any relevant group member has a relevant interest in only some of it.
4
The option is treated for the purposes of this Part of this Schedule as if it had been revoked in relation to—
a
that land, or
b
the parts of that land in which neither E nor any relevant group member has a relevant interest at the relevant time,
as the case may be.
5
Sub-paragraphs (2) and (3) are subject to paragraph 26 (anti-avoidance).
6
An option to tax (“the original option”) exercised in relation to any land (otherwise than by reference to any building or part of a building) before the relevant time by—
a
E, or
b
any relevant group member,
may, in circumstances specified in a public notice, be converted by E into separate options to tax if, at the relevant time, E or any relevant group member has a relevant interest in the land or any part of it.
7
The original option is converted into separate options to tax different parcels of land comprised in that land or part.
8
Those separate options to tax are treated for the purposes of this Part of this Schedule—
a
as if they had been exercised by E, and
b
as if they had effect from the time from which the original option had effect.
9
But—
a
those separate options to tax are treated for the purposes of paragraph 3(2) as if they had effect from the relevant time, and
b
paragraph 23 (revocation of an option: the “cooling off” period) does not apply to those separate options to tax.
10
The notification of the election given by E must identify—
a
the separate options to tax treated as exercised by E as a result of sub-paragraphs (6) to (8), and
b
the different parcels of land in relation to which those separate options to tax are treated as having effect.
11
In this paragraph—
a
any reference to any relevant group member is to a body corporate which is a relevant group member at the relevant time, and
b
any reference to any relevant group member, in relation to any relevant interest in any building or land (or any part of it), is to any relevant group member regardless of whether it has exercised an option to tax the building or land (or any part of it).
12
In this paragraph “relevant group member” and “relevant interest”, have the meaning given by paragraph 21.
13
In this paragraph any reference to a real estate election under paragraph 21 does not include an election which is made under sub-paragraph (11) of that paragraph.
Sch. 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)