Explanatory note

This Order amends Schedule 10 (Buildings and Land) to The Value Added Tax Act 1994 with effect from 30th November 1994.

Subject to certain exceptions, paragraph 2(1) of that Schedule excludes from exemption grants in relation to land in respect of which the grantor has elected to waive exemption. This Order adds a further exception. Where a person makes a grant to a connected person and either of them is not a fully taxable person, the grant will not be excluded from exemption by virtue of an election to waive exemption made by the grantor. The new paragraph 3(8A) added to the Schedule by this Order makes provision for determining for these purposes whether or not persons are—