Search Legislation

The Value Added Tax Regulations 1995

 Help about what version

What Version

 Help about advanced features

Advanced Features

More Resources

Status:

Point in time view as at 01/04/2010. This version of this provision has been superseded. Help about Status

Close

Status

You are viewing this legislation item as it stood at a particular point in time. A later version of this or provision, including subsequent changes and effects, supersedes this version.

Note the term provision is used to describe a definable element in a piece of legislation that has legislative effect – such as a Part, Chapter or section.

Changes to legislation:

There are currently no known outstanding effects for the The Value Added Tax Regulations 1995, Section 101. 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.

Attribution of input tax to taxable suppliesU.K.

101.  —

(1) Subject to [F1regulations 102, 103A, 105A and 106ZA], the amount of input tax which a taxable person shall be entitled to deduct provisionally shall be that amount which is attributable to taxable supplies in accordance with this regulation.

(2) [F2Subject to paragraph (8) below and regulation 107(1)(g)(ii),] in respect of each prescribed accounting period—

(a)goods imported or acquired by and, F3... goods or services supplied to, the taxable person in the period shall be identified,

(b)there shall be attributed to taxable supplies the whole of the input tax on such of those goods or services as are used or to be used by him exclusively in making taxable supplies,

(c)no part of the input tax on such of those goods or services as are used or to be used by him exclusively in making exempt supplies, or in carrying on any activity other than the making of taxable supplies, shall be attributed to taxable supplies, F4...

(d)[F5where a taxable person does not have an immediately preceding longer period and subject to subparagraph (e) below,] there shall be attributed to taxable supplies such proportion of the [F6residual input tax] as bears the same ratio to the total of such input tax as the value of taxable supplies made by him bears to the value of all supplies made by him in the period.

[F7(e)the attribution required by subparagraph (d) above may be made on the basis of the extent to which the goods or services are used or to be used by him in making taxable supplies,

(f)where a taxable person has an immediately preceding longer period and subject to subparagraph (g) below, his residual input tax shall be attributed to taxable supplies by reference to the percentage recovery rate for that immediately preceding longer period, and

(g)the attribution required by subparagraph (f) above may be made using the calculation specified in subparagraph (d) above provided that that calculation is used for all the prescribed accounting periods which fall within any longer period applicable to a taxable person.]

(3) In calculating the proportion under paragraph (2)(d) [F8or (g)] above, there shall be excluded—

(a)any sum receivable by the taxable person in respect of any supply of capital goods used by him for the purposes of his business,

(b)any sum receivable by the taxable person in respect of any of the following descriptions of supplies made by him, where such supplies are incidental to one or more of his business activities—

[F9(i)any supply of a description falling within Group 5 of Schedule 9 to the Act,,

(ii)any other financial transaction, and

(iii)any real estate transaction,]

(c)that part of the value of any supply of goods on which output tax is not chargeable by virtue of any order made by the Treasury under section 25(7) of the Act unless the taxable person has imported, acquired or been supplied with the goods for the purpose of selling them, F10...

(d)the value of any supply which, under or by virtue of any provision of the Act, the taxable person makes to himself, [F11and]

[F12(e)supplies of a description falling within paragraph (8) below.]

(4) The ratio calculated for the purpose of paragraph (2)(d) [F13, (e) or (g)] above shall be expressed as a percentage and, if that percentage is not a whole number, it shall be rounded up [F14as specified in paragraph (5) below].

F15(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F16(5) The percentage shall be rounded up—

(a)where in any prescribed accounting period or longer period which is applied the amount of input tax which is available for attribution under paragraph 2(d) [F17, (e) or (g)] above prior to any such attribution being made does not amount to more than £400,000 per month on average, to the next whole number, and

(b)in any other case, to two decimal places.]

[F18(6) For the purposes of this regulation, a “real estate transaction” includes any grant, assignment (including any transfer, disposition or sale), surrender or reverse surrender of any interest in, right over or licence to occupy land.]

[F19(7) In this regulation “taxable supplies” include supplies of a description falling within regulation 103.

(8) Input tax incurred on goods or services acquired by or supplied to a taxable person which are used or to be used by him in whole or in part in making—

(a)supplies falling within either item 1 or item 6 of Group 5 of Schedule 9 to the Act; or

(b)supplies made from an establishment situated outside the United Kingdom,

shall, whether the supply in question is made within or outside the United Kingdom, be attributed to taxable supplies on the basis of the extent to which the goods or services are used or to be used by him in making taxable supplies.

(9) For the purposes of this regulation in relation to a taxable person—

(a)“immediately preceding longer period” means the longer period applicable to him which ends immediately before the longer period in which the prescribed accounting period in respect of which he is making the attribution required by paragraph (2)(d) to (g) above falls;

(b)“percentage recovery rate” means the amount of relevant residual input tax which he was entitled to attribute to taxable supplies under regulation 107(1)(a) to (d), expressed as a percentage of the total amount of the residual input tax which fell to be so attributed and rounded up in accordance with paragraphs (4) and (5) above;

(c)“relevant residual input tax” means all residual input tax other than that which falls to be attributed under paragraph (8) above.

(10) In this regulation “residual input tax” means input tax incurred by a taxable person on goods or services which are used or to be used by him in making both taxable and exempt supplies.]

Textual Amendments

F2Words in reg. 101(2) inserted (1.4.2009 in relation to input tax incurred by a taxable person on goods imported or acquired by, or goods or services supplied to, him on or after that date) by The Value Added Tax (Amendment) (No. 2) Regulations 2009 (S.I. 2009/820), regs. 1(1), 4(b) (with reg. 1(2))

F4Word in reg. 101(2)(c) omitted (1.4.2009 in relation to input tax incurred by a taxable person on goods imported or acquired by, or goods or services supplied to, him on or after that date) by virtue of The Value Added Tax (Amendment) (No. 2) Regulations 2009 (S.I. 2009/820), regs. 1(1), 4(c) (with reg. 1(2))

F5Words in reg. 101(2)(d) inserted (1.4.2009 in relation to input tax incurred by a taxable person on goods imported or acquired by, or goods or services supplied to, him on or after that date) by The Value Added Tax (Amendment) (No. 2) Regulations 2009 (S.I. 2009/820), regs. 1(1), 4(d)(i) (with reg. 1(2))

F6Words in reg. 101(2)(d) substituted (1.4.2009 in relation to input tax incurred by a taxable person on goods imported or acquired by, or goods or services supplied to, him on or after that date) by The Value Added Tax (Amendment) (No. 2) Regulations 2009 (S.I. 2009/820), regs. 1(1), 4(d)(ii) (with reg. 1(2))

F7Reg. 101(2)(e)-(g) inserted (1.4.2009 in relation to input tax incurred by a taxable person on goods imported or acquired by, or goods or services supplied to, him on or after that date) by The Value Added Tax (Amendment) (No. 2) Regulations 2009 (S.I. 2009/820), regs. 1(1), 4(e) (with reg. 1(2))

F8Words in reg. 101(3) inserted (1.4.2009 in relation to input tax incurred by a taxable person on goods imported or acquired by, or goods or services supplied to, him on or after that date) by The Value Added Tax (Amendment) (No. 2) Regulations 2009 (S.I. 2009/820), regs. 1(1), 4(f) (with reg. 1(2))

F10Word in reg. 101(3)(c) omitted (1.4.2009 in relation to input tax incurred by a taxable person on goods imported or acquired by, or goods or services supplied to, him on or after that date) by virtue of The Value Added Tax (Amendment) (No. 2) Regulations 2009 (S.I. 2009/820), regs. 1(1), 4(g) (with reg. 1(2))

F11Word in reg. 101(3)(d) inserted (1.4.2009 in relation to input tax incurred by a taxable person on goods imported or acquired by, or goods or services supplied to, him on or after that date) by The Value Added Tax (Amendment) (No. 2) Regulations 2009 (S.I. 2009/820), regs. 1(1), 4(h) (with reg. 1(2))

F12Reg. 101(3)(e) inserted (1.4.2009 in relation to input tax incurred by a taxable person on goods imported or acquired by, or goods or services supplied to, him on or after that date) by The Value Added Tax (Amendment) (No. 2) Regulations 2009 (S.I. 2009/820), regs. 1(1), 4(i) (with reg. 1(2))

F13Words in reg. 101(4) inserted (1.4.2009 in relation to input tax incurred by a taxable person on goods imported or acquired by, or goods or services supplied to, him on or after that date) by The Value Added Tax (Amendment) (No. 2) Regulations 2009 (S.I. 2009/820), regs. 1(1), 4(j) (with reg. 1(2))

F17Words in reg. 101(5) inserted (1.4.2009 in relation to input tax incurred by a taxable person on goods imported or acquired by, or goods or services supplied to, him on or after that date) by The Value Added Tax (Amendment) (No. 2) Regulations 2009 (S.I. 2009/820), regs. 1(1), 4(k) (with reg. 1(2))

F19Reg. 101(7)-(10) inserted (1.4.2009 in relation to input tax incurred by a taxable person on goods imported or acquired by, or goods or services supplied to, him on or after that date) by The Value Added Tax (Amendment) (No. 2) Regulations 2009 (S.I. 2009/820), regs. 1(1), 4(l) (with reg. 1(2))

Commencement Information

I1Reg. 101 in force at 20.10.1995, see reg. 1

Back to top

Options/Help

Print Options

You have chosen to open The Whole Instrument

The Whole Instrument 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 Instrument as a PDF

The Whole Instrument 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 Instrument without Schedules

The Whole Instrument without 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?

You have chosen to open The Whole Instrument without Schedules as a PDF

The Whole Instrument without Schedules 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 Instrument

The Whole Instrument 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 Instrument without Schedules

The Whole Instrument without 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.