VALUE ADDED TAX 1 This Order may be cited as the Value Added Tax (Buildings and Land) Order 1995 and shall come into force on 1st March 1995. 2 Schedule 10 to the Value Added Tax Act 1994 shall be amended in accordance with articles 3 to 9 of this Order. 3 In paragraph 2— a after sub-paragraph (2)(b) there shall be inserted the following— c a pitch for a residential caravan; d facilities for the mooring of a residential houseboat. ; b in sub-paragraph (7) after the words “31st July 1989” there shall be inserted “if”. 4 In paragraph 3— a In sub-paragraph (3) for the words “parades, precincts and complexes divided into separate units” there shall be substituted “complexes consisting of a number of units grouped around a fully enclosed concourse”; b for sub-paragraphs (4), (5) and (6) there shall be substituted the following— 4 Subject to sub-paragraph (5) below, an election under paragraph 2 above shall be irrevocable. 5 Where— a the time that has elapsed since the day on which an election had effect is— i less than 3 months; or ii more than 20 years; b in a case to which paragraph (a)(i) above applies— i no tax has become chargeable and no credit for input tax has been claimed by virtue of the election; and ii no grant in relation to the land which is the subject of the election has been made which, by virtue of being a supply of the assets of a business to a person to whom the business (or part of it) is being transferred as a going concern, has been treated as neither a supply of goods nor a supply of services; and c the person making the election obtains the written consent of the Commissioners; the election shall be revoked, in a case to which paragraph (a)(i) above applies, from the date on which it was made, and in a case to which paragraph (a)(ii) above applies, from the date on which the written consent of the Commissioners is given or such later date as they may specify in their written consent. 6 An election under paragraph 2 above shall have effect after 1st March 1995 only if— a in the case of an election made before that date— i it also had effect before that date; or ii written notification of the election is given to the Commissioners not later than the end of the period of 30 days beginning with the day on which the election was made, or not later than the end of such longer period beginning with that day as the Commissioners may in any particular case allow, together with such information as the Commissioners may require; b in the case of an election made on or after that date— i written notification of the election is given to the Commissioners not later than the end of the period of 30 days beginning with the day on which the election is made, or not later than the end of such longer period beginning with that day as the Commissioners may in any particular case allow, together with such information as the Commissioners may require; and ii in a case in which sub-paragraph (9) below requires the prior written permission of the Commissioners to be obtained, that permission has been given. ; c after sub-paragraph (7) there shall be inserted— 7A In paragraph 2 above— a “houseboat” means a houseboat within the meaning of Group 9 of Schedule 8; and b a houseboat is not a residential houseboat if residence in it throughout the year is prevented by the terms of a covenant, statutory planning consent or similar permission. ; d in sub-paragraph (9) after the word “unless” there shall be inserted “the conditions for automatic permission specified in a notice published by the Commissioners are met or”. 5 Paragraph 4 shall be deleted. 6 In paragraph 5— a for sub-paragraph (1) there shall be substituted— 1 Paragraph 6 below shall apply— a on the first occasion during the period beginning with the day when the construction of a building or work within sub-paragraph (2) below is first planned and ending 10 years after the completion of the building or work on which a person who is a developer in relation to the building or work— i grants an interest in, right over or licence to occupy the building or work (or any part of it) which is an exempt supply; or ii is in occupation of the building, or uses the work (or any part of it) when not a fully taxable person (or, if a person treated under section 43 as a member of a group when the representative member is not a fully taxable person); or b if construction commenced before 1st March 1995 and the period referred to in paragraph (a) above has not then expired, on 1st March 1997; whichever is the earlier. ; b in sub-paragraph (2) after the words “sub-paragraph (3)” there shall be inserted “and (3A)”; c in sub-paragraph 3(a) after the words “1st August 1989” there shall be inserted “or after 28th February 1995”; d after sub-paragraph (3) there shall be inserted— 3A A building or work which would, apart from this sub-paragraph, fall within sub-paragraph (2) above is not within that sub-paragraph if— a construction of it was commenced before 1st March 1995 but had not been completed by that date; and b the developer— i makes no claim after that date to credit for input tax, entitlement to which is dependent upon his being treated in due course as having made a supply by virtue of paragraph 6 below; and ii has made no such claim prior to that date; or iii accounts to the Commissioners for a sum equal to any such credit that has previously been claimed. ; e in sub-paragraph (4)(a) after the words “supplies to, and” there shall be inserted “acquisitions and”; f in sub-paragraph (8)-(i) for the words “sub-paragraphs (1), (2) and (4) to (7)” there shall be substituted “sub-paragraphs (1), (2) and (3A) to (7)”; and ii after the words “1st January 1992” in paragraphs (a), (b) and (c) respectively there shall be inserted “and before 1st March 1995”; g in sub-paragraph (10) for the words “sub-paragraphs (4) to (7)” there shall be substituted “sub-paragraphs (3A) to (7)”. 7 In paragraph 6— a in sub-paragraph (7) for the words “sub-paragraphs (4) to (7)” there shall be substituted “sub-paragraphs (3A) to (7)”; and b after sub-paragraph (8) there shall be added— 9 Where this paragraph applies by virtue of paragraph 5(1)(b) above it shall have effect as if— a in sub-paragraph (1)— i the words “(or any part of it)” were omitted; and ii for the words “the last day” to “ready for occupation or use” there were substituted “1st March 1997”; b in sub-paragraph (2)(a) the words “or to be made” and the words “to be made” were omitted; c in sub-paragraph (2)(b) the words “or to be made” were omitted; and d sub-paragraph (5) were omitted. . 8 In paragraph 7 after the words “paragraph 6(1) above” there shall be inserted “(except where that paragraph applies by virtue of paragraph 5(1)(b))”. 9 In paragraph 9— a for the words “Notes (1) to (6) and Note (10)” there shall be substituted “Notes (1) to (6), (10), (12) and (19)”; b for the words “Notes (1) and (2)” there shall be substituted “Notes (1), (1A), (2) and (15)”. Tim Wood Derek Conway Two of the Lords Commissioners of Her Majesty’s Treasury 8th February 1995