Market leading insight for tax experts
View online issue

VAT: Christmas consultations

printer Mail

Revenue & Customs Brief 49/10 announced a consultation to consider proposals to simplify the ‘change in use’ provisions in VATA 1994 Sch 10 Part 2 (Residential and charitable buildings: change of use).

The current provisions are complex and ‘produce uneven tax consequences,’ HMRC said. A single adjustment mechanism is proposed, to be applied in all circumstances. Comments are invited by 3 January 2011. See

HMRC also invited comments by 3 January on draft legislation to amend part of the ‘option to tax’ anti-avoidance test for supplies of land and buildings (VATA 1994 Sch 10 paras 12-17).

The proposed amendment concerns the meaning of ‘exempt land’. The ‘mechanistic nature’ of the anti-avoidance test has resulted in concerns about the effect of the measure on certain transactions, and a new ‘2% occupation rule' is proposed. See Revenue & Customs Brief 50/10, available at