Textual Amendments
F1 Sch. 6 renumbered as Sch. 6 Pt. 2 (with effect in accordance with Sch. 38 para. 7(1) of the amending Act) by Finance Act 2013 (c. 29), Sch. 38 para. 2
1(1)Where—U.K.
(a)the value of a supply made by a taxable person for a consideration in money is (apart from this paragraph) less than its open market value, and
(b)the person making the supply and the person to whom it is made are connected, and
(c)if the supply is a taxable supply, the person to whom the supply is made is not entitled under sections 25 and 26 to credit for all the VAT on the supply,
the Commissioners may direct that the value of the supply shall be taken to be its open market value.
(2)A direction under this paragraph shall be given by notice in writing to the person making the supply, but no direction may be given more than 3 years after the time of the supply.
(3)A direction given to a person under this paragraph in respect of a supply made by him may include a direction that the value of any supply—
(a)which is made by him after the giving of the notice, or after such later date as may be specified in the notice, and
(b)as to which the conditions in paragraphs (a) to (c) of sub-paragraph (1) above are satisfied,
shall be taken to be its open market value.
(4)For the purposes of this paragraph any question whether a person is connected with another shall be determined in accordance with [F2section 1122 of the Corporation Tax Act 2010].
(5)This paragraph does not apply to a supply to which paragraph [F38A or] 10 below applies.
Textual Amendments
F2Words in Sch. 6 para. 1(4) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 285(b) (with Sch. 2)
F3Words in Sch. 6 para. 1(5) inserted (with effect in accordance with s. 200(8) of the amending Act) by Finance Act 2012 (c. 14), s. 200(6)