Value Added Tax Act 1994

[F1 7 (1) Paragraph 6 does not apply to a taxable person in relation to a scheme— U.K.

(a) where the taxable person is not a group undertaking in relation to any other undertaking and conditions A and B below, as they have effect in relation to the scheme, are met in relation to the taxable person, or

(b) where the taxable person is a group undertaking in relation to any other undertaking and conditions A and B below, as they have effect in relation to the scheme, are met in relation to the taxable person and every other group undertaking.

(2) Condition A is that the total value of the person’s taxable supplies and exempt supplies in the period of twelve months ending immediately before the beginning of the relevant period is less than the minimum turnover.

(3) Condition B is that the total value of the person’s taxable supplies and exempt supplies in the prescribed accounting period immediately preceding the relevant period is less than the appropriate proportion of the minimum turnover.

(4) In sub-paragraphs (2) and (3) “the minimum turnover” means—

(a) in relation to a designated scheme, £600,000, and

(b) in relation to any other notifiable scheme, £10,000,000.

(5) In sub-paragraph (3) “the appropriate proportion” means the proportion which the length of the prescribed accounting period bears to twelve months.

(6) The value of a supply of goods or services shall be determined for the purposes of this paragraph on the basis that no VAT is chargeable on the supply.

(7) The Treasury may by order substitute for the sum for the time being specified in sub-paragraph (4)(a) or (b) such other sum as they think fit.

(8) This paragraph has effect subject to paragraph 8.

(9) In this paragraph—

• “relevant period” means the prescribed accounting period referred to in paragraph [F2 6(1)(a), (b) or (c)];

• “undertaking” and “group undertaking” have the same meanings as in [F3 section 1161 of the Companies Act 2006].]

Textual Amendments

F1 Sch. 11A inserted (22.7.2004 for specified purposes, 1.8.2004 in so far as not already in force) by Finance Act 2004 (c. 12), s. 19(2), Sch. 2 para. 2; S.I. 2004/1934, art. 2

F2 Words in Sch. 11A para. 7(9) substituted (1.8.2005) by Finance (No. 2) Act 2005 (c. 22), s. 6(2), Sch. 1 para. 6; S.I. 2005/2010, art. 2 (with art. 4)

F3 Words in Sch. 11A para. 7(9) substituted (6.4.2008) by The Companies Act 2006 (Consequential Amendments) (Taxes and National Insurance) Order 2008 (S.I. 2008/954), arts. 1(1), 20 (with art. 4)