The Value Added Tax (Land) Order 1995

Statutory Instruments

1995 No. 282

VALUE ADDED TAX

The Value Added Tax (Land) Order 1995

Made

8th February 1995

Laid before the House of Commons

8th February 1995

Coming into force

1 March 1995

The Treasury, in exercise of the powers conferred on them by section 31(2) of the Value Added Tax Act 1994(1) and of all other powers enabling them in that behalf, hereby make the following Order:

1.  This Order may be cited as the Value Added Tax (Land) Order 1995 and shall come into force on 1 March 1995.

2.  Group 1 (Land) of Schedule 9 to the Value Added Tax Act 1994 shall be amended in accordance with articles 3 to 7 of this Order.

3.  For Note (1) there shall be substituted—

“(1) “Grant” includes an assignment or surrender and the supply made by the person to whom an interest is surrendered when there is a reverse surrender.”

4.  After Note (1) there shall be inserted—

“(1A) A “reverse surrender” is one in which the person to whom the interest is surrendered is paid by the person by whom the interest is being surrendered to accept the surrender.”

5.  In Note (3) for the words “Notes (2) to (6)” there shall be substituted “Notes (2) to (10) and (12)”.

6.  In Note (7) after the words “paragraph 6(1) of Schedule 10” there shall be inserted “(except where that paragraph applies by virtue of paragraph 5(1)(b) of that Schedule)”.

7.  In Note (11)(a) for the words “Note (7)” there shall be substituted “Note (13)”.

Tim Wood

Derek Conway

Two of the Lords Commissioners of Her Majesty’s Treasury

8th February 1995

Explanatory Note

(This note is not part of the Order)

This Order amends Group 1 of Schedule 9 (Land) to the Value Added Tax Act 1994 with effect from 1 March 1995.

Group 1 of Schedule 9 exempts, with a number of exceptions, the grant of any interest in or right over land.

This Order provides a revised definition of grant which extends exemption to the surrender of an interest and also to reverse surrenders as defined in the new Note (1A) inserted by article 4.

The Order also makes consequential amendments to references to Notes which have become necessary by virtue of changes made to Schedules 8 and 10 to the Value Added Tax Act 1994 by other Orders.

(1)

1994 c. 23.