Part II Value Added Tax

Other provisions relating to charges to VAT

33 Small gifts.

1

In Schedule 4 to the M1Value Added Tax Act 1994 (matters to be treated as supply of goods or services), in paragraph 5(2)(a) (gift of goods in the course or furtherance of a business not a supply if cost to donor is not more than £10), for “£10” there shall be substituted “ £15 ”.

2

At the end of paragraph 5 of Schedule 4 to that Act there shall be inserted the following sub-paragraph—

7

The Treasury may by order substitute for the sum for the time being specified in sub-paragraph (2)(a) above such sum, not being less than £10, as they think fit.

3

In section 97(4) of that Act (orders which are subject to affirmative procedure), after paragraph (a) there shall be inserted the following paragraph—

ab

an order under paragraph 5(7) of Schedule 4 substituting a lesser sum for the sum for the time being specified in paragraph 5(2)(a) of that Schedule;

4

Subsection (1) above shall apply where a gift is made after 28th November 1995.