Schedule 1

First grant of a major interest in a building

Any scheme comprising or including the first grant of a major interest in any building of a description falling within item 1(a) of Group 5 of Schedule 8 (construction of buildings etc.) where—

1. (a)

   the grant is made to a person connected with the grantor; and

2. (b)

   the grantor, or any body corporate treated as a member of a VAT group under section 43 of the Act of which the grantor is a member,attributes to that grant input tax incurred by him—

   1. (i)

      in respect of a service charge relating to the building; or

   2. (ii)

      in connection with any extension, enlargement, repair, maintenance or refurbishment of the building, other than for remedying defects in the original construction.

Payment handling service

Any scheme comprising or including a retail supply of goods or services together with a linked supply to the same customer, where the total consideration for the retail supply and the linked supply is no different, or not significantly different, from what it would be for the retail sale alone.

NOTE

“Linked supply” means a supply by the retailer or any other person that—

1. (a)

   relates to the means of payment used for the retail supply; and

2. (b)

   is a supply of a description falling within Group 5 of Schedule 9 (finance).

Value shifting

Any scheme comprising or including a retail supply of goods or services together with a linked supply to the same customer where—

1. (a)

   the linked supply is a separate supply under the terms of any agreement made by the customer;

2. (b)

   part of the total consideration for the retail supply and the linked supply is attributed to the linked supply by the terms of any such agreement; and

3. (c)

   the total consideration for the retail supply and the linked supply is no different, or not significantly different, from what it would be for the retail supply alone.

NOTES

1. (1)

   “Retail supply” means a supply by retail upon which VAT is charged at the rate in force under section 2(1) of the Act (rate of VAT)^f1.

2. (2)

   “Linked supply” means a supply of goods or services made by the retailer or any other person which is zero-rated or exempt.

Leaseback agreement

Any scheme comprising or including the supply of goods, or the leasing or

letting on hire of goods, (“the relevant supply”) by a taxable person to a connected relevant person where—

1. (a)

   the taxable person or another taxable person connected with him, including the relevant person, is entitled to credit for all the input tax arising on the purchase of the goods;

2. (b)

   the relevant person uses the goods in the course or furtherance of a business carried on by him, and for the purpose of that business, otherwise than for the purpose of selling, or leasing or letting on hire, the goods; and

3. (c)

   the relevant person or a person connected with him has directly or indirectly provided funds for meeting more than 90% of the cost of the goods.

NOTES

1. (1)

   “Relevant person” means any person who, in respect of the relevant supply, is not entitled to credit for all the input tax wholly attributable to the supplies he makes.

2. (2)

   The provision of funds includes—

   1. (a)

      the making of a loan of funds; and

   2. (b)

      the provision of any consideration for the issue of any shares or other securities issued wholly or partly for raising the funds.

3. (3)

   The grant, assignment or surrender of a major interest in land is not a supply of goods for the purposes of this scheme.

Extended approval period

Any scheme comprising or including a retail supply of goods where—

1. (a)

   the goods are sent or taken on approval or sale or return or similar terms;

2. (b)

   payment for the supply is required in full by the retailer before the expiry of any approval, return or similar period; and

3. (c)

   for the purposes of accounting for VAT, the retailer treats the goods as supplied on a date after the date on which payment is received in full.

Groups: third party suppliers

Any scheme comprising or including supplies made to one or more group members by a specified body in relation to which the benefits condition is not satisfied.

NOTE

The Value Added Tax (Groups: eligibility) Order 2004^f2 shall apply for thepurposes of determining whether—

1. (a)

   a body corporate is a specified body; and

2. (b)

   the benefits condition is satisfied in relation to it.

Exempt education or vocational training by a non-profit making body

Any scheme comprising or including the conduct of a relevant business by a non-profit making body where—

1. (a)

   it receives a relevant supply from a connected taxable person who is not an eligible body; and

2. (b)

   in any one prescribed accounting period the value of all such relevant supplies is equal to or more than 20% of the cost of making the supplies comprising the relevant business.

NOTES

1. (1)

   “Relevant business” means a business whose activities consist wholly or mainly of the supply of education or vocational training to persons who are not taxable persons.

2. (2)

   “Non-profit making body” means a body within Note (1)(e) of Group 6 of Schedule 9 (Education)^f3 which is not otherwise within Note 1.

3. (3)

   “Relevant supply” means the supply, including the leasing or letting on hire, for use in a relevant business of—

   1. (a)

      a capital item used in the course or furtherance of the relevant business, and for the purpose of that business, otherwise than solely for the purpose of selling, or leasing or letting on hire, the item;

   2. (b)

      staff;

   3. (c)

      management services;

   4. (d)

      administration services; or

   5. (e)

      accountancy services.

4. (4)

   “Eligible body” has the meaning given by Note (1) of Group 6 of Schedule 9.

5. (5)

   “Vocational training” has the meaning given by Note (3) of Group 6 of Schedule 9, but does not include vocational training of a description falling within item 5 or 5A of that Group.

Taxable education or vocational training by a non-eligible body

Any scheme comprising or including the conduct of a relevant business by a non-eligible body connected to an eligible body where—

1. (a)

   the non-eligible body benefits or intends to benefit the eligible body by way of gift, dividend or otherwise; or

2. (b)

   the eligible body makes any supply to the non-eligible body which is a relevant supply and, in any one prescribed accounting period, the value of all such relevant supplies is equal to or more than 20% of the cost of making the supplies comprising the relevant business.

NOTES

1. (1)

   “Eligible body” has the meaning given by Note (1) of Group 6 of Schedule 9.

2. (2)

   “Relevant business” means a business whose activities consist wholly or mainly of the taxable supply of education or vocational training.

3. (3)

   “Vocational training” has the meaning given by Note (3) of Group 6 of Schedule 9.

4. (4)

   “Relevant supply” means the supply, or leasing or letting on hire, for use in a relevant business of—

   1. (a)

      a capital item used in the course or furtherance of the relevant business, and for the purpose of that business, otherwise than solely for the purpose of selling, or leasing or letting on hire, the item;

   2. (b)

      staff;

   3. (c)

      management services;

   4. (d)

      administration services; or

   5. (e)

      accounting services.