Thirty-First Report of Session 2019-21 Contents

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Instruments reported

At the Committee’s meeting on 27 January 2021 it scrutinised a number of instruments. It was agreed that the special attention of the House of Commons should be drawn to two of those considered in accordance with Standing Orders. The instruments and the grounds for reporting them are given below. The relevant departmental memoranda are published as appendices to this report.

1S.I. 2020/1413: Reported for doubtful vires

Value Added Tax (Reduced Rate) (Hospitality and Tourism) (Extension of Time Period) (Coronavirus) Order 2020

1.1The Committee draws the special attention of this House to this Order on the ground that there is doubt as to whether it is intra vires in one respect.

1.2This Order, which is subject to the negative resolution procedure, extends the period for which temporary value added tax relief applies to certain supplies relating to hospitality, holiday accommodation and admission to certain attractions. The preamble refers only to the powers used for making article 2 (and not article 1) and the Committee asked HM Revenue and Customs to explain. In a memorandum printed at Appendix 1, the Department accepts that article 1 should have been referred to in the preamble. The decision of the Court of Appeal in Vibixa Ltd and Polestar Jowetts Ltd v. Komori UK Ltd and others [2006] EWCA Civ 536 gives preambles a particular importance and failure to cite an enabling power in the preamble to an instrument raises a doubt as to its vires. In this case the enabling powers have been cited but have been applied only to article 2 and not to article 1. The Committee accordingly reports article 1 for doubt as to whether it is intra vires.

2S.I. 2020/1495: Reported for defective drafting

Value Added Tax (Miscellaneous and Transitional Provisions, Amendment and Revocation) (EU Exit) Regulations 2020

2.1The Committee draws the special attention of this House to these Regulations on the ground that they are defectively drafted in one respect.

2.2These Regulations, which are subject to the negative resolution procedure, make amendments to legislation so that it operates as required at the end of the Implementation Period. Regulation 6 defines “relevant importation” and at paragraph (c) describes a time period as “ending on 30th June 2021”. The Committee asked HM Revenue and Customs to confirm that the phrase should be “ending with 30th June 2021” to avoid confusion about the time of day at which the period ends (having regard to the fact that the period begins during a day). In a memorandum printed at Appendix 2, the Department accepts that the time period should have been drafted in this way. The Committee accordingly reports regulation 6 for defective drafting, acknowledged by the Department.