Article 4 Designation of provision included in or associated with avoidance schemes

In Schedule 2 after paragraph 7 insert—

“Issue of face-value vouchers

8.

(1)

The issue of face-value vouchers for consideration.

(2)

Paragraph 1 does not apply where—

(a)

the issuer expects, on reasonable grounds, that at least 75% of the face-value of the vouchers will be redeemed within three years of the date on which the vouchers were issued; and

(b)

the vouchers were issued to relevant persons.

(3)

A relevant person is

(a)

any person who is not connected with the issuer; or

(b)

any body corporate—

(i)

which is a member of the same VAT group as the issuer for the purposes of section 43 of the Act; and

(ii)

which does not intend to supply the vouchers, directly or indirectly, to any person connected with the issuer outside that VAT group.

(4)

“Face-value vouchers” means tokens, stamps or vouchers of a description falling within paragraph 1(1) of Schedule 10A^f1 to the Act (face-value vouchers) and “face-value” has the meaning given by paragraph 1(2) of that Schedule.”