Reduction etc in foreign tax paid

8 (1) Sub-paragraphs (2) to (4) apply if any of the following events take
place—

(a) the way in which a qualifying foreign tax is charged or
5calculated is changed retrospectively,

(b) a tax authority waives or refunds all or part of an amount
of qualifying foreign tax due from P, or

(c) as a result of being liable to pay an amount of qualifying
foreign tax, P or a connected person is entitled to any kind
10of tax deduction or relief calculated by reference to the
amount of qualifying foreign tax.

(2) P must notify the Commissioners of the event on becoming aware
of it.

(3) If the event is a retrospective change in the way in which the
15qualifying foreign tax is charged or calculated, the amount for
which credit is allowed under section 26IA is to be recalculated in
accordance with this Schedule.

(4) In any other case, the amount for which credit is allowed under
that section is to be reduced by a just and reasonable sum to reflect
20the amount of tax waived or refunded or the deduction or relief
given.

(5) If it transpires (on account of this paragraph or otherwise) that a
repayment or part of a repayment under section 26IA should not
have been made, P is liable for the amount that should not have
25been repaid, as if it were unpaid remote gaming duty.

(6) Section 1122 of the Corporation Tax Act 2010 (connected persons)
applies for the purposes of sub-paragraph (1)(c).”

Consequential amendments

10 In section 13A(2) of FA 1994 (meaning of “relevant decision”), after
30paragraph (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
the Betting and Gaming Duties Act 1981 (double taxation
relief), or the amount of the repayment to which any person
35is 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.

(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
40Schedule 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)
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
45tax) 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
under paragraph 8(2) of Schedule 4B to BGDA 1981 (reduction etc in
qualifying foreign tax) and obligation to register under regulations under
5section 26J of that Act”.

Commencement

12 The amendments made by this Schedule have effect in relation to accounting
periods ending on or after 1 April 2012 (and, accordingly, the first
reconciliation period begins with the first accounting period in relation to
10which the amendments have effect).

Section 195

SCHEDULE 26 Anti-forestalling charge to VAT

Part 1 Anti-forestalling charge to VAT

15Introductory

1 (1) Paragraph 2 applies where—

(a) there is a change in the descriptions of exempt or zero-rated supplies
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) 20the change relates to supplies of a description specified in paragraph
3.

(2) In this Schedule—

• “date of the VAT change” means 1 October 2012;

• “pre-change supply” means a supply which—

  (a)

  25is 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
  been charged to VAT at the standard rate as a result of the
  order.

30The charge

2 (1) There is an anti-forestalling charge to value added tax on any pre-change
supply which—

(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) 35“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
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
building, of any services, other than the services of an architect,
5surveyor 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
incorporation of the materials into the building (or its site),

(c) 10the 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
of items 1 to 3 of that Group on 21 March 2012.

(3) 15For 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

4 (1) A supply of services within paragraph 3(1)(a) or (c) is linked to the post-
20change 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
concerned (or its site) on or after that date.

(3) 25A 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
30preventing 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.

(3) 35An 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

Liability

6 (1) An anti-forestalling charge under this Schedule on a chargeable pre-change
5supply—

(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
of supply).

(2) If, on the date on which the anti-forestalling charge becomes due, the person
10who 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
1994,

the anti-forestalling charge is a liability of the representative member of the
15group.

Amount

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

(2) 20If 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.

(3) The relevant proportion is—

where—

• 25P 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
  (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
  30supply.

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
35under 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
5the 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) 10there 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 15Regulations 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) 20Expressions 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.

Section 201

SCHEDULE 27 25Non-established taxable persons

New Schedule 1A

1 In VATA 1994, after Schedule 1 insert—

“ Schedule 1A Registration in respect of taxable supplies: non-uk establishment

Liability to be registered

1 (1) 30A person becomes liable to be registered under this Schedule at
any time if conditions A to D are met.

(2) Condition A is that—

(a) the person makes taxable supplies, or

(b) there are reasonable grounds for believing that the person
will make taxable supplies in the period of 30 days then
beginning.

(3) Condition B is that those supplies (or any of them) are or will be
5made in the course or furtherance of a business carried on by the
person.

(4) Condition C is that the person has no business establishment, or
other fixed establishment, in the United Kingdom in relation to
any business carried on by the person.

(5) 10Condition D is that the person is not registered under this Act.

2 (1) A person does not become liable to be registered by virtue of
paragraph 1(2)(b) if the reason for believing that taxable supplies
will be made in the 30-day period mentioned there is that a
business, or part of a business, carried on by a taxable person is to
15be transferred to the person as a going concern in that period.

(2) But if the transfer takes place, the transferee becomes liable to be
registered under this Schedule at the time of the transfer if
conditions A to D in paragraph 1 are met in relation to the
transferee at that time.

(3) 20In determining for the purposes of sub-paragraph (2) whether
condition B is met, the reference in paragraph 1(3) to a business is
to be read as a reference to the business, or part of the business,
that is transferred to the transferee.

3 A person is treated as having become liable to be registered under
25this Schedule at any time when the person would have become so
liable under paragraph 1 or 2 but for any registration that is
subsequently cancelled under—

(a) paragraph 11,

(b) paragraph 13(3) of Schedule 1,

(c) 30paragraph 6(2) of Schedule 2,

(d) paragraph 6(3) of Schedule 3, or

(e) paragraph 6(2) of Schedule 3A.

4 (1) A person does not cease to be liable to be registered under this
Schedule except in accordance with sub-paragraph (2).

(2) 35A person who has become liable to be registered under this
Schedule ceases to be so liable at any time if the Commissioners
are satisfied that—

(a) the person has ceased to make taxable supplies in the
course or furtherance of a business carried on by the
40person, or

(b) the person is no longer a person in relation to whom
condition C in paragraph 1 is met.

Notification of liability and registration

5 (1) A person who becomes liable to be registered by virtue of
45paragraph 1(2)(a) or 2(2) must notify the Commissioners of the

liability before the end of the period of 30 days beginning with the
day on which the liability arises.

(2) The Commissioners must register any such person (whether or not
the person so notifies them) with effect from the beginning of the
day on which the liability arises.

6 (1) 5A person who becomes liable to be registered by virtue of
paragraph 1(2)(b) must notify the Commissioners of the liability
before the end of the period by reference to which the liability
arises.

(2) The Commissioners must register any such person (whether or not
10the person so notifies them) with effect from the beginning of the
period by reference to which the liability arises.

Notification of end of liability

7 (1) A person registered under paragraph 5 or 6 who, on any day,
ceases to make or have the intention of making taxable supplies in
15the course or furtherance of a business carried on by that person
must notify the Commissioners of that fact within 30 days
beginning with that day.

(2) But the person need not notify the Commissioners if on that day
the person would otherwise be liable or entitled to be registered
20under this Act (disregarding for this purpose the person’s
registration under this Schedule and any enactment that prevents
a person from being liable to be registered under different
provisions at the same time).

Cancellation of registration

8 (1) 25The Commissioners must cancel a person’s registration under this
Schedule if—

(a) the person satisfies them that the person is not liable to be
registered under this Schedule, and

(b) the person requests the cancellation.

(2) 30The cancellation is to be made with effect from—

(a) the day on which the request is made, or

(b) such later day as may be agreed between the
Commissioners and the person.

(3) But the Commissioners must not cancel the registration with effect
35from any time unless they are satisfied that it is not a time when
the person would be subject to a requirement to be registered
under this Act.

9 (1) The Commissioners may cancel a person’s registration under this
Schedule if they are satisfied that the person has ceased to be liable
40to be registered under this Schedule.

(2) The cancellation is to be made with effect from—

(a) the day on which the person ceased to be so liable, or

(b) such later day as may be agreed between the
Commissioners and the person.

(3) But the Commissioners must not cancel the registration with effect
from any time unless they are satisfied that it is not a time when
the person would be subject to a requirement, or entitled, to be
registered under this Act.

10 5In determining for the purposes of paragraphs 8 and 9 whether a
time is a time when a person would be subject to a requirement, or
entitled, to be registered under this Act, so much of any provision
of this Act as prevents a person from becoming liable or entitled to
be registered when the person is already registered or when the
10person is so liable under any other provision must be disregarded.

11 (1) The Commissioners may cancel a person’s registration under this
Schedule if they are satisfied that the person was not liable to be
registered under this Schedule on the day on which the person
was registered.

(2) 15The cancellation is to be made with effect from the day on which
the person was registered.

12 Paragraphs 8 to 11 are subject to paragraph 18 of Schedule 3B
(cancellation of registration under this Schedule of persons
seeking to be registered under that Schedule etc).

20Exemption from registration

13 (1) The Commissioners may exempt a person from registration under
this Schedule if the person satisfies them that the taxable supplies
that the person makes or intends to make—

(a) are all zero-rated, or

(b) 25would all be zero-rated if the person were a taxable person.

(2) The power in sub-paragraph (1) is exercisable only if the person so
requests and the Commissioners think fit.

(3) If there is a material change in the nature of the supplies made by
a person exempted under this paragraph, the person must notify
30the Commissioners of the change—

(a) within 30 days beginning with the day on which the
change occurred, or

(b) if no particular day is identifiable as that day, within 30
days of the end of the quarter in which the change
35occurred.

(4) If it appears to the Commissioners that a request under this
paragraph should no longer be acted upon on or after any day or
has been withdrawn on any day, they must register the person
who made the request with effect from that day.

(5) 40A reference in this paragraph to supplies is to supplies made in the
course or furtherance of a business carried on by the person.

Supplementary

14 Any notification required under this Schedule must be made in
such form and manner and must contain such particulars as may

be specified in regulations or by the Commissioners in accordance
with regulations.”

Other amendments of VATA 1994

2 VATA 1994 is amended as follows.

3 In section 7 (place of supply of goods), in subsection (4)(c)(ii), after
5“Schedule 1” insert “or 1A”.

4 In section 54 (farmers etc), in subsection (2), after “Schedule 1” insert “or is,
has become or has ceased to be liable to be registered under Schedule 1A”.

5 In section 55 (customers to account for tax on supplies of gold etc), in
subsection (1)—

(a) 10for “Schedule 1” substitute “Schedules 1 and 1A”, and

(b) for “that Schedule” substitute “Schedule 1”.

6 In section 55A (customers to account for tax on supplies of goods or services
of a kind used in missing trader intra-community fraud), in subsection (3),
for “Schedule 1” substitute “Schedules 1 and 1A”.

7 15In section 69 (breaches of regulatory provisions), in subsection (1)(a), after
“Schedule 1,” insert “paragraph 7 of Schedule 1A,”.

8 In section 73 (failure to make returns etc), in subsection (3)(b), after
“Schedule 1,” insert “paragraph 9 or 11 of Schedule 1A,”.

9 In section 74 (interest on VAT recovered or recoverable by assessment), in
20subsection (1)(c), after “Schedule 1,” insert “under paragraph 13 of Schedule
1A,”.

10 In section 77 (assessments: time limits and supplementary assessments), in
subsection (4C), after paragraph (a) insert—

“(aa) paragraph 5, 6 or 13(3) of Schedule 1A,”.

11 (1) 25Paragraph 1 of Schedule 1 (registration in respect of taxable supplies) is
amended as follows.

(2) In sub-paragraph (1)—

(a) in paragraph (a), after “if” insert “the person is UK-established and”,
and

(b) 30in paragraph (b), after “if” insert “the person is UK-established and”.

(3) In sub-paragraph (2), for “and the transferee is not registered under this Act
at the time of the transfer” substitute “, the transferee is UK-established at
the time of the transfer and the transferee is not registered under this Act at
that time”.

(4) 35After sub-paragraph (2) insert—

“(2A) In determining the value of a person’s supplies for the purposes of
sub-paragraph (1)(a) or (2)(a), supplies are to be taken into account
(subject to sub-paragraphs (3) to (7)) whether or not the person
was UK-established when they were made.”

(5) 40In sub-paragraph (4)(a), after “below,” insert “paragraph 11 of Schedule
1A,”.

(6) In sub-paragraph (5), after “below,” insert “paragraph 11 of Schedule 1A,”.

(7) At the end insert—

“(10) A person is “UK-established” if the person has a business
establishment, or some other fixed establishment, in the United
5Kingdom in relation to a business carried on by the person.”

12 In paragraph 3 of that Schedule, at the end of paragraph (b) insert “; or

“(c) is not at that time UK-established (see paragraph 1(10)).”

13 Accordingly, in the heading of that Schedule, at the end insert “: uk
establishment”.

14 10In paragraph 1 of Schedule 2 (registration in respect of supplies from other
member States)—

(a) in sub-paragraph (1)(b), after “Schedule 1” insert “or 1A”, and

(b) in sub-paragraph (4), after “Schedule 1,” insert “paragraph 11 of
Schedule 1A,”.

15 15In paragraph 1 of Schedule 3 (registration in respect of acquisitions from
other member States)—

(a) in sub-paragraph (1)(b), after “Schedule 1” insert “, 1A”, and

(b) in sub-paragraph (3), after “Schedule 1,” insert “paragraph 11 of
Schedule 1A,”.

16 20In paragraph 1 of Schedule 3A (registration in respect of disposals of assets
for which a VAT repayment is claimed)—

(a) in sub-paragraph (1), after “Schedule 1,” insert “1A,”, and

(b) in sub-paragraph (2), after “Schedule 1,” insert “paragraph 11 of
Schedule 1A,”.

17 25In paragraph 18 of Schedule 3B (supply of electronic services in member
States: special accounting scheme)—

(a) after “Schedule 1”, in the first place it occurs, insert “or 1A”, and

(b) after “Schedule 1”, in the second place it occurs, insert “or, as the case
may be, 1A”.

30Amendments of other Acts

18 In Schedule 41 to FA 2008 (penalties: failure to notify and certain VAT and
excise wrongdoing), in the Table in paragraph 1, after the entry for the
obligations under Schedule 1 to VATA 1994 insert the following entry—

Application

19 The amendments made by this Schedule have effect in relation to supplies
made or to be made on or after 1 December 2012.