Comments of the CIOT on suggested changes to VATA 1994 Schedule 9 Group 5 following Customs & Excise v FDR [2000] STC 672, CA, sent to HM Customs on 23 December 2002.
Introduction
The Chartered Institute of Taxation welcomes the opportunity to comment upon the revised proposals for amending VATA 1994 Sch 9 Group 5. Our comments are set out below. New Item 2A
We welcome the new Item 2A, which replaces Note 2A and makes the proviso to Note 5A redundant. The legislation is much clearer.
Note 1A
We are content to see no change to Note 1A. As indicated in our response to the original consultation, the word “separate” appears to do no more than state the obvious.
Note 2B
We welcome the repeal of Note 2B. As indicated in our response to the original consultation, the Customs and Excise view of what does, or does not, amount to “the management of credit” should be included in the relevant public notice.
The Chartered Institute of Taxation
23 December 2002
Technical Department
020 7235 9381
