2011 No. 254

Value Added Tax

The Value Added Tax (Amendment) Regulations 2011

Made

Laid before the House of Commons

Coming into force

The Commissioners for Her Majesty’s Revenue and Customs1 make the following Regulations in exercise of the powers conferred by sections 25(1) and 26(1), (3) and (4) of the Value Added Tax Act 19942.

Citation, commencement and effect1

1

These Regulations may be cited as the Value Added Tax (Amendment) Regulations 2011 and come into force on 2nd March 2011.

2

Regulations 3 to 5 have effect in relation to supplies treated as made under paragraph 37 of Schedule 10 to the Value Added Tax Act 19943 where the building that is supplied was completed on or after 1st March 2011.

Amendment of the Value Added Tax Regulations 19952

The Value Added Tax Regulations 19954 are amended as follows.

Adjustments to the deduction of input tax on capital items

3

In regulation 112(3) (interpretation of Part XV)—

a

for “paragraph 37(3)” substitute “paragraph 37(1)”;

b

for “paragraph 37(5)” substitute “paragraph 37(3)”;

c

for “3” substitute “36”.

4

In regulation 114(3B) (period of adjustment)—

a

for “paragraph 37(5)” substitute “paragraph 37(3)”;

b

at the end insert “divided by 12 and rounded up to the next whole number”.

5

In regulation 115(5) (method of adjustment), for “paragraph 37(3)” substitute “paragraph 37(1)”.

Dave HartnettMike ElandTwo of the Commissioners for Her Majesty’s Revenue and Customs
EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations, which come into force on 2nd March 2011, amend Part 15 (adjustments to the deduction of input tax on capital items) of the Value Added Tax Regulations 1995 (S.I. 1995/2518).

Regulations 3 to 5 amend regulations 112 (interpretation of Part XV), 114 (period of adjustment) and 115 (method of adjustment) to substitute revised references to paragraph 37 of Schedule 10 to the Value Added Tax Act 1994 (“paragraph 37”) following its amendment by the Value Added Tax (Buildings and Land) Order 2011 (S.I. 2011/86) and to adjust for the fact that the revised calculation in paragraph 37 is calculated by reference to months rather than years to ensure that these provisions continue to have their intended effect.

A full Impact Assessment has not been produced in relation to the changes made by this instrument as they have no impact on business, charities or voluntary bodies.