Finance Bill 2012 will contain anti-forestalling legislation to ensure that changes announced in the Budget to the VAT liability of (a) supplies of self storage facilities and (b) supplies of services and materials in connection with approved alterations of protected buildings are ‘fully effective’.
David Gauke, the Exchequer Secretary to the Treasury, said in a written ministerial statement on 21 March that the government had moved to address ‘inconsistencies in the treatment of these supplies and to prevent VAT avoidance that exploits the VAT exemption for supplies of self storage’.
Gauke added: ‘Anti-forestalling legislation will apply to these types of supplies made on or after 21 March 2012. This will ensure that the new VAT liability will apply to these supplies if they are performed (or, in the case of supplies of materials, incorporated in the building) on or after 1 October 2012, even if the supply is treated as being made earlier than this because of an advance payment or delivery of materials. The new VAT liability will also apply to grants of rights or options made on or after 21 March 2012 to receive supplies of self storage to be provided on or after 1 October 2012.
‘Whilst the attached anti-forestalling legislation will apply for supplies treated as taking place on or after 21 March 2012, any VAT arising from its operation will not become due until 1 October 2012. Until then, suppliers should continue to apply the current rules.’
Draft legislation and an explanatory note are provided on the HMRC website.
Finance Bill 2012 will contain anti-forestalling legislation to ensure that changes announced in the Budget to the VAT liability of (a) supplies of self storage facilities and (b) supplies of services and materials in connection with approved alterations of protected buildings are ‘fully effective’.
David Gauke, the Exchequer Secretary to the Treasury, said in a written ministerial statement on 21 March that the government had moved to address ‘inconsistencies in the treatment of these supplies and to prevent VAT avoidance that exploits the VAT exemption for supplies of self storage’.
Gauke added: ‘Anti-forestalling legislation will apply to these types of supplies made on or after 21 March 2012. This will ensure that the new VAT liability will apply to these supplies if they are performed (or, in the case of supplies of materials, incorporated in the building) on or after 1 October 2012, even if the supply is treated as being made earlier than this because of an advance payment or delivery of materials. The new VAT liability will also apply to grants of rights or options made on or after 21 March 2012 to receive supplies of self storage to be provided on or after 1 October 2012.
‘Whilst the attached anti-forestalling legislation will apply for supplies treated as taking place on or after 21 March 2012, any VAT arising from its operation will not become due until 1 October 2012. Until then, suppliers should continue to apply the current rules.’
Draft legislation and an explanatory note are provided on the HMRC website.
.jpg?sfvrsn=335a554c_0 "300 x 250 (MPU)")