Regulation 112 Interpretation of Part XVI1

Any expression used in this Part to which a meaning is given in Part XIV of these Regulations shall, unless the contrary intention appears, have the same meaning in this Part as it has in that Part F1and in particular, exempt supplies and taxable supplies shall be accorded the same meanings as defined in regulation 110 above.

Any reference in this Part to a capital item shall be construed as a reference to a capital item to which this Part applies by virtue of regulation 113, being an item which a person F2who has or acquires an interest in the item in question (hereinafter referred to as “the owner”) uses in the course or furtherance of a business carried on by him, and for the purpose of that business, otherwise than solely for the purpose of selling the item.

In this regulation and in regulation 114, an interest includes an interest which is treated as being supplied to a person under F4paragraph 37(1) of Schedule 10 to the Act provided that the numerator of the fraction in F5paragraph 37(3) of that Schedule is F636 or more.

The reference to “owner” in paragraph (2) shall be taken to refer to—

Where the owner is a transferee or representative member, that person shall be treated as having done everything that the transferor or group member (as may be the case) has done in respect of the capital item.