Search Legislation

Finance (No. 2) Act 2005

 Help about what version

What Version

 Help about advanced features

Advanced Features

Changes over time for: SCHEDULE 1

 Help about opening options

Alternative versions:

Status:

Point in time view as at 17/07/2013.

Changes to legislation:

There are currently no known outstanding effects for the Finance (No. 2) Act 2005, SCHEDULE 1. Help about Changes to Legislation

Close

Changes to Legislation

Revised legislation carried on this site may not be fully up to date. At the current time any known changes or effects made by subsequent legislation have been applied to the text of the legislation you are viewing by the editorial team. Please see ‘Frequently Asked Questions’ for details regarding the timescales for which new effects are identified and recorded on this site.

Section 6

SCHEDULE 1U.K.Disclosure of value added tax avoidance schemes

IntroductionU.K.

1U.K.Schedule 11A to VATA 1994 (disclosure of avoidance schemes) is amended in accordance with this Schedule.

Commencement Information

I1Sch. 1 para. 1 in force at 1.8.2005 by S.I. 2005/2010, art. 2 (with art. 4)

Interpretative provisionsU.K.

2U.K.In paragraph 1 (interpretation), after the definition of “designated scheme” insert—

non-deductible tax”, in relation to a taxable person, has the meaning given by paragraph 2A;.

Commencement Information

I2Sch. 1 para. 2 in force at 1.8.2005 by S.I. 2005/2010, art. 2 (with art. 4)

3U.K.For paragraph 2 substitute—

2(1)For the purposes of this Schedule, a taxable person obtains a tax advantage if—

(a)in any prescribed accounting period, the amount by which the output tax accounted for by him exceeds the input tax deducted by him is less than it would otherwise be,

(b)he obtains a VAT credit when he would not otherwise do so, or obtains a larger VAT credit or obtains a VAT credit earlier than would otherwise be the case,

(c)in a case where he recovers input tax as a recipient of a supply before the supplier accounts for the output tax, the period between the time when the input tax is recovered and the time when the output tax is accounted for is greater than would otherwise be the case, or

(d)in any prescribed accounting period, the amount of his non-deductible tax is less than it would otherwise be.

(2)For the purposes of this Schedule, a person who is not a taxable person obtains a tax advantage if his non-refundable tax is less than it would otherwise be.

(3)In sub-paragraph (2), “non-refundable tax”, in relation to a person who is not a taxable person, means—

(a)VAT on the supply to him of any goods or services,

(b)VAT on the acquisition by him from another member State of any goods, and

(c)VAT paid or payable by him on the importation of any goods from a place outside the member States,

but excluding (in each case) any VAT in respect of which he is entitled to a refund from the Commissioners by virtue of any provision of this Act.

Commencement Information

I3Sch. 1 para. 3 in force at 1.8.2005 by S.I. 2005/2010, art. 2 (with art. 4)

4U.K.After paragraph 2 insert—

Meaning of “non-deductible tax”U.K.

2A(1)In this Schedule “non-deductible tax”, in relation to a taxable person, means—

(a)input tax for which he is not entitled to credit under section 25, and

(b)any VAT incurred by him which is not input tax and in respect of which he is not entitled to a refund from the Commissioners by virtue of any provision of this Act.

(2)For the purposes of sub-paragraph (1)(b), the VAT “incurred” by a taxable person is—

(a)VAT on the supply to him of any goods or services,

(b)VAT on the acquisition by him from another member State of any goods, and

(c)VAT paid or payable by him on the importation of any goods from a place outside the member States.

Commencement Information

I4Sch. 1 para. 4 in force at 1.8.2005 by S.I. 2005/2010, art. 2 (with art. 4)

Duty to notify CommissionersU.K.

5(1)Paragraph 6 (duty to notify Commissioners) is amended as follows.U.K.

(2)In sub-paragraph (1)—

(a)omit the word “or” at the end of paragraph (a), and

(b)after paragraph (b) insert , or

(c)the amount of his non-deductible tax in respect of any prescribed accounting period is less than it would be but for such a scheme.

(3)After sub-paragraph (2) insert—

(2A)Sub-paragraph (2) does not apply to a taxable person in relation to any scheme if he has on a previous occasion—

(a)notified the Commissioners under that sub-paragraph in relation to the scheme, or

(b)provided the Commissioners with prescribed information under sub-paragraph (3) (as it applied before the scheme became a designated scheme) in relation to the scheme.

(4)For sub-paragraph (5) substitute—

(5)Sub-paragraph (3) also does not apply where the scheme is one in respect of which the taxable person has on a previous occasion provided the Commissioners with prescribed information under that sub-paragraph.

Commencement Information

I5Sch. 1 para. 5 in force at 1.8.2005 by S.I. 2005/2010, art. 2 (with arts. 3, 4)

6U.K.In paragraph 7 (exemptions from duty to notify) in the definition of “relevant period” in sub-paragraph (9) for “6(1)(a) or (b)” substitute “ 6(1)(a), (b) or (c) ”.

Commencement Information

I6Sch. 1 para. 6 in force at 1.8.2005 by S.I. 2005/2010, art. 2 (with art. 4)

Amount of penaltyU.K.

7(1)Paragraph 11 (amount of penalty) is amended as follows.U.K.

(2)In sub-paragraph (3)—

(a)omit the word “and” at the end of paragraph (a), and

(b)after paragraph (b) insert , and

(c)to the extent that—

(i)the case falls within paragraph 6(1)(c), and

(ii)the excess of the notional non-deductible tax of the taxable person for the relevant periods over his non-deductible tax for those periods is not represented by a corresponding amount which by virtue of paragraph (a) or (b) is part of the VAT saving,

the amount of the excess.

(3)In sub-paragraph (4), after “(3)(a)” insert “ and (c) ”.

(4)After sub-paragraph (4) insert—

(5)In sub-paragraph (3)(c), “notional non-deductible tax”, in relation to a taxable person, means the amount that would, but for the scheme, have been the amount of his non-deductible tax.

Commencement Information

I7Sch. 1 para. 7 in force at 1.8.2005 by S.I. 2005/2010, art. 2 (with art. 4)

Penalty assessmentsU.K.

8U.K.In paragraph 12 (penalty assessments) for sub-paragraph (3) substitute—

(3)In a case where—

(a)the penalty falls to be calculated by reference to the VAT saving as determined under paragraph 11(3), and

(b)the notional tax cannot readily be attributed to any one or more prescribed accounting periods,

the notional tax shall be treated for the purposes of this Schedule as attributable to such period or periods as the Commissioners may determine to the best of their judgment and notify to the person liable for the penalty.

(3A)In sub-paragraph (3) “the notional tax” means—

(a)the VAT that would, but for the scheme, have been shown in returns as payable by or to the taxable person, or

(b)any amount that would, but for the scheme, have been the amount of the non-deductible tax of the taxable person.

Commencement Information

I8Sch. 1 para. 8 in force at 1.8.2005 by S.I. 2005/2010, art. 2 (with art. 4)

Back to top

Options/Help

Print Options

You have chosen to open The Whole Act

The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open The Whole Act as a PDF

The Whole Act you have selected contains over 200 provisions and might take some time to download.

Would you like to continue?

You have chosen to open the Whole Act

The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open Schedules only

The Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

Close

Legislation is available in different versions:

Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.

Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.

Point in Time: This becomes available after navigating to view revised legislation as it stood at a certain point in time via Advanced Features > Show Timeline of Changes or via a point in time advanced search.

Close

See additional information alongside the content

Geographical Extent: Indicates the geographical area that this provision applies to. For further information see ‘Frequently Asked Questions’.

Show Timeline of Changes: See how this legislation has or could change over time. Turning this feature on will show extra navigation options to go to these specific points in time. Return to the latest available version by using the controls above in the What Version box.

Close

Opening Options

Different options to open legislation in order to view more content on screen at once

Close

More Resources

Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as enacted version that was used for the print copy
  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • correction slips
  • links to related legislation and further information resources
Close

Timeline of Changes

This timeline shows the different points in time where a change occurred. The dates will coincide with the earliest date on which the change (e.g an insertion, a repeal or a substitution) that was applied came into force. The first date in the timeline will usually be the earliest date when the provision came into force. In some cases the first date is 01/02/1991 (or for Northern Ireland legislation 01/01/2006). This date is our basedate. No versions before this date are available. For further information see the Editorial Practice Guide and Glossary under Help.

Close

More Resources

Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as enacted version that was used for the print copy
  • correction slips

Click 'View More' or select 'More Resources' tab for additional information including:

  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • links to related legislation and further information resources