VAT – Option to tax
New VAT legislation comes into force on 1 April 2010 designed to facilitate the use of the option to tax by businesses. The main two amendments are intended to:
- Exclude certain transactions from the effect of the “anti-avoidance provision” and to allow developers to tax supplies of buildings where persons financing construction work are in occupation of only minor (upto 10%) of buildings;
- Removes the condition that a taxpayer having opted to tax the land must not have used it since the option had effect if he is to revoke the option
The third provision is a minor amendment following the enactment of the Housing and Regeneration Act 2008.