Finance Bill

Session 2012 - 13
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Finance Bill

Finance Bill
Schedule 26 — Anti-forestalling charge to VAT
Part 1 — Anti-forestalling charge to VAT
576

Consequential amendments
10
In section 13A(2) of FA 1994 (meaning of “relevant decision”), after
paragraph (g) insert—
“(ga)
any decision by HMRC as to whether or not any person is
entitled to any repayment under section 5E, 8ZA or 26IA of
5
the Betting and Gaming Duties Act 1981 (double taxation
relief), or the amount of the repayment to which any person
is so entitled;”.
11    (1)
The Table in paragraph 1 of Schedule 41 to FA 2008 (penalties: failure to
notify and certain VAT and excise wrongdoing) is amended as follows.
10
      (2)
In the second column of the entry for general betting duty, for “paragraph
4(1) to (3) of Schedule 1 to BGDA 1981” substitute “paragraph 8(2) of
Schedule A1 to BGDA 1981 (obligation to notify reduction etc in qualifying
foreign tax) or paragraph 4(1) to (3) of Schedule 1 to that Act”.
      (3)
In the second column of the entry for pool betting duty, for “paragraphs 4(2)
15
and 5(1) of Schedule 1 to BGDA 1981” substitute “paragraph 8(2) of Schedule
A1 to BGDA 1981 (obligation to notify reduction etc in qualifying foreign
tax) or paragraphs 4(2) and 5(1) of Schedule 1 to that Act”.
      (4)
In the second column of the entry for remote gaming duty, for “to register
under regulations under section 26J of BGDA 1981” substitute “to notify
20
under paragraph 8(2) of Schedule 4B to BGDA 1981 (reduction etc in
qualifying foreign tax) and obligation to register under regulations under
section 26J of that Act”.
Commencement
12
The amendments made by this Schedule have effect in relation to accounting
25
periods ending on or after 1 April 2012 (and, accordingly, the first
reconciliation period begins with the first accounting period in relation to
which the amendments have effect).
Schedule 26
Section 195

Anti-forestalling charge to VAT
30
Part 1
Anti-forestalling charge to VAT
Introductory
1     (1)
Paragraph 2 applies where—
(a)
there is a change in the descriptions of exempt or zero-rated supplies
35
as a result of an order under section 30(4) or 31(2) of VATA 1994,
(b)
the order is expressed to come into force on 1 October 2012, and
(c)
the change relates to supplies of a description specified in paragraph
3.
      (2)
In this Schedule—
40

Finance Bill
Schedule 26 — Anti-forestalling charge to VAT
Part 1 — Anti-forestalling charge to VAT
577

“date of the VAT change” means 1 October 2012;
“pre-change supply” means a supply which—
(a)
is treated as taking place before the date of the VAT change,
and
(b)
if it had been treated as taking place on that date, would have
5
been charged to VAT at the standard rate as a result of the
order.
The charge
2     (1)
There is an anti-forestalling charge to value added tax on any pre-change
supply which—
10
(a)
is treated as taking place on or after 21 March 2012, and
(b)
is a supply linked to the post-change period (see paragraph 4).
      (2)
“Chargeable pre-change supply” means a supply to which sub-paragraph
(1) applies.
      (3)
An anti-forestalling charge to value added tax under this Schedule is to be
15
treated for all purposes as if it were value added tax charged in accordance
with VATA 1994.
The supplies
3     (1)
The descriptions of supplies are—
(a)
the supply, in the course of an approved alteration of a protected
20
building, of any services, other than the services of an architect,
surveyor or any person acting as consultant or in a supervisory
capacity,
(b)
the supply of building materials to a person to whom the supplier is
supplying services within paragraph (a) which include the
25
incorporation of the materials into the building (or its site),
(c)
the grant of facilities for the self storage of goods, or
(d)
the grant of a right to receive a supply within paragraph (c).
      (2)
The Notes to Group 6 in Schedule 8 to VATA 1994 have effect for the
purposes of sub-paragraph (1)(a) and (b) as they had effect for the purposes
30
of items 1 to 3 of that Group on 21 March 2012.
      (3)
For the purposes of this Schedule a right to receive a supply includes—
(a)
any option to receive that supply, and
(b)
any interest deriving from such an option.
Supplies linked to the post-change period
35
4     (1)
A supply of services within paragraph 3(1)(a) or (c) is linked to the post-
change period if, and to the extent that, the services are carried out or
provided on or after the date of the VAT change.
      (2)
A supply of goods within paragraph 3(1)(b) is linked to the post-change
period if, and to the extent that, the goods are incorporated into the building
40
concerned (or its site) on or after that date.

Finance Bill
Schedule 26 — Anti-forestalling charge to VAT
Part 2 — Liability and amount
578

      (3)
A supply within paragraph 3(1)(d) is linked to the post-change period if, and
to the extent that, the services to which the grant relates are carried out or
provided on or after that date.
Power to modify this Schedule
5     (1)
The Treasury may by order modify this Schedule for the purposes of
5
preventing an anti-forestalling charge from arising, in the circumstances
specified in the order, in relation to any description of supplies specified in
the order.
      (2)
An order under this paragraph may contain provision having retrospective
effect.
10
      (3)
An order under this paragraph is to be made by statutory instrument.
      (4)
A statutory instrument containing an order under this paragraph is subject
to annulment in pursuance of a resolution of the House of Commons.
Part 2
Liability and amount
15
Liability
6     (1)
An anti-forestalling charge under this Schedule on a chargeable pre-change
supply—
(a)
is a liability of the supplier (subject to sub-paragraph (2)), and
(b)
becomes due on the date of the VAT change (rather than at the time
20
of supply).
      (2)
If, on the date on which the anti-forestalling charge becomes due, the person
who would be liable to pay the charge under sub-paragraph (1)—
(a)
is not a taxable person, but
(b)
is treated as a member of a group under sections 43A to 43D of VATA
25
1994,

the anti-forestalling charge is a liability of the representative member of the
group.
Amount
7     (1)
The amount of the anti-forestalling charge on a chargeable pre-change
30
supply is the amount of VAT that would be chargeable on the supply if it
were subject to VAT at 20%.

This is subject to any reduction under sub-paragraph (2).
      (2)
If the chargeable pre-change supply is not wholly linked to the post-change
period, the anti-forestalling charge is the relevant proportion of that amount.
35
      (3)
The relevant proportion is—

P

W


where—

P is so much of the consideration for the chargeable supply as is
attributable, on a just and reasonable basis, to that part of the supply

Finance Bill
Schedule 26 — Anti-forestalling charge to VAT
Part 3 — Administration and interpretation

579

(or, in the case of a grant of a right, that part of the supply to which

the right relates) which is linked to the post-change period;

W is the whole of the consideration for the chargeable pre-change

supply.

Part 3

Administration and interpretation

Person ceasing to be taxable person before anti-forestalling charge due

8 (1)

This paragraph applies if, on the date on which an anti-forestalling charge

under this Schedule becomes due (“the due date”), the person who is liable

to pay the charge under paragraph 6 is not a taxable person.

(2)	The anti-forestalling charge must be accounted for by that person in

accordance with VATA 1994 (and regulations made under that Act) as if it

were VAT due in the last period for which the person was required to make

a return by or under VATA 1994.

(3)	If an amount assessed as due by way of an anti-forestalling charge under this

Schedule would (in the absence of this sub-paragraph) carry interest from a

date earlier than the due date, it is to be treated as only carrying interest from

the due date.

Adjustment of contracts following the VAT change

9 (1)

This paragraph applies where—

(a)	a contract for the supply of goods or services is made before the date

of the VAT change, and

(b)	there is an anti-forestalling charge under this Schedule on the

supply.

(2)	The consideration for the supply is to be increased by an amount equal to the

anti-forestalling charge, unless the contract provides otherwise.

Invoices

10	Regulations under paragraph 2A of Schedule 11 to VATA 1994 (VAT

invoices) may make provision about the provision, replacement or

correction of invoices in connection with an anti-forestalling charge under

this Schedule.

Interpretation: general

11 (1)

Expressions used in this Schedule and in VATA 1994 have the same meaning

in this Schedule as in that Act.

(2)	In this Schedule “treated as taking place” means treated as taking place for

the purposes of the charge to VAT.