Reduced-rate supplies: deemed supply

45A

1

This paragraph applies where—

a

a taxable supply has been made to any person (“the recipient”),

b

the supply was made on the basis that it was a reduced-rate supply, and

c

it is later determined that the supply was not a reduced-rate supply.

2

For the purposes of this Schedule—

a

the recipient is deemed to make a taxable supply to itself of the taxable commodity, and

b

the amount payable by way of levy on that deemed supply is 80 per cent. of the amount that would be payable if the supply were not a reduced-rate supply.