Regulation 3

For regulation 19 of the principal Regulations there shall be substituted the following—

“19

(1)

Subject to paragraph (2) below, where the grant of a tenancy or lease is a supply of goods by virtue of paragraph 4 of Schedule 2 to the Act, and the whole or part of the consideration for that grant is payable periodically or from time to time, goods shall be treated as separately and successively supplied at the earlier of the following times—

(a)

whenever a part of the consideration is received; or

(b)

whenever the supplier issues a tax invoice relating to the grant.

(2)

Where in respect of the grant of a tenancy or lease such as is mentioned in paragraph (1) above the supplier, at or about the beginning of any period not exceeding one year, issues a tax invoice containing, in addition to the particulars specified in regulation 13, the following particulars—

(a)

the dates on which any parts of the consideration are to become due for payment in the period;

(b)

the amount payable (excluding tax) on each such date; and

(c)

the rate of tax in force at the time of the issue of the tax invoice and the amount of tax chargeable in accordance with that rate on each of such payments,

goods shall be treated as separately and successively supplied whenever a payment in respect of the tenancy or lease becomes due or is received, whichever is the earlier.

(3)

Where, on or before any of the dates that a payment is due as stated on an invoice issued as described in paragraph (2) above, there is a change in the tax chargeable on supplies of the description to which the invoice relates, that invoice shall cease to be treated as a tax invoice in respect of any such supplies for which payments are due after the change.”.