SCHEDULES
SCHEDULE 2Supplementary charge to VAT
Part 1Supplementary charge to VAT
3Grant of right spanning the date of the VAT change
1
For the purposes of this Schedule, a supply consisting of the grant by a person (“the grantor”) of a right to goods or services spans the date of the VAT change where—
a
that supply is treated as taking place before the date of the VAT change,
b
the goods or services are to be supplied at a discount or free of charge, and
c
the basic time of supply for the supply of some or all of the goods or services (see paragraph 4) is on or after the date of the VAT change.
2
In relation to the grant of the right, the relevant conditions are conditions A to C.
3
Condition A is that the grantor and the person to whom the right is granted are connected with each other at any time in the period—
a
beginning with the day on which the supply consisting of the grant of the right is treated as taking place, and
b
ending on the date of the VAT change or, if the right is exercised (entirely or partly) on a later date, that date (or, if more than one, the first of those dates).
4
Paragraph 5 modifies condition A in cases involving a series of supplies.
5
Condition B is that the aggregate of the following is more than £100,000—
a
the relevant consideration for the grant of the right, and
b
the relevant consideration for every related supply of goods or services (including every related grant of a right to goods or services) that spans the date of the VAT change (see paragraph 6).
6
Condition C is that the payment made in respect of the grant of the right is financed by the grantor or a person connected with the grantor (see paragraph 7).
7
In this Schedule references to a right to goods or services include—
a
any right or option with respect to such goods or services, and
b
any interest deriving from such a right or option.