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The Value Added Tax (Business Gifts of Small Value) Order 2001

S.I. 2001/735 · Made 7 March 2001

Original text. legislation.gov.uk does not revise statutory instruments, so later amendments are not shown here. Changes made to it are listed under each provision when known.

VALUE ADDED TAX

Made 7th March 2001

Laid before the House of Commons 7th March 2001

Coming into force 8th March 2001

The Treasury, in exercise of the powers conferred on them by paragraph 5(7) of Schedule 4 to the Value Added Tax Act 1994f1, hereby make the following Order:

Annotations to the whole text

Footnotes

f1

1994 c. 23; paragraph 5(7) was added by section 33(2) of the Finance Act 1996 (c. 8).

Contents

  1. 1Article 1
  2. 2Article 2
  3. Signature
  4. Explanatory note

1

This Order may be cited as the Value Added Tax (Business Gifts of Small Value) Order 2001 and shall come into force on 8th March 2001 and shall apply in relation to gifts made on or after that date.

2

In Schedule 4 to the Value Added Tax Act 1994 (matters to be treated as supply of goods or services), in paragraph 5(2)(a) (gift of goods in the course or furtherance of a business not a supply if cost to donor is not more than £15)f1, for “£15” there shall be substituted “£50”.

Signature

Jim Dowd

Greg Pope

Two of the Lords Commissioners of Her Majesty’s Treasury

7th March 2001

Explanatory note

(This note is not part of the Order)

This Order, which comes into force on 8th March 2001, amends paragraphs 5(2)(a) of Schedule 4 to the Value Added Tax Act 1994.

Subject to certain exceptions, the gifting of assets of a business constitutes a supply of goods for VAT purposes. One of the exceptions is where the cost to the donor of the gift is not more than a certain amount. This Order increases that amount from £15 to £50.