Details of the Schedule
2.Paragraph 2 of the Schedule makes a change to section 809X ITA 2007 to reflect the removal of the reference to a relevant VAT relief in the public access rule in section 809Z.
3.Paragraph 3 of the Schedule amends section 809Y ITA 2007 to provide that, where exempt property is lost, stolen or destroyed, the rules which treat such property as remitted when it ceases to be exempt property do not apply after the loss, theft or destruction and, in cases where the property has been lost or stolen, until the property is subsequently recovered. It also provides that property which has been lost, stolen or destroyed will be treated as remitted where a compensation payment is released with respect to that property.
4.Paragraph 4 of the Schedule inserts new section 809YF ITA 2007. New subsections 809YF(1) to (3) provide that, where a payment is made in compensation for exempt property which has been lost, stolen or destroyed, that property will not be treated as remitted to the UK provided the payment is taken offshore or used to make a qualifying investment as defined in section 809VC ITA within 45 days of receipt.
5.Paragraph 5 of the Schedule amends the public access rule in section 809Z ITA 2007 by removing the conditions which require that the property must be a work of art, collector’s item or antique in order to be treated as exempt property under that rule and must attract a relevant VAT relief.
6.Paragraph 6 of the Schedule removes section 809Z1 which defines relevant VAT relief for the purposes of the public access rule.
7.Paragraph 7 of the Schedule amends the temporary importation rule in section 809Z4 which applies to property which has been brought to the UK for 275 countable days or fewer. It provides that this total is subject to any increase provided by new subsection (3B). It also provides that any day, or part of a day, on which property meets the public access rule or meets new subsection (3A) are not treated as a countable day.
8.New subsection (3A) applies to property which is not available to be used or enjoyed in the UK, has not been recovered (in the case of lost or stolen property) and where no compensation payment has been released with respect to its loss, theft or destruction.
9.New subsection (3B) applies to property which has been lost or stolen and subsequently recovered. It provides that there will be 45 days in which such property needs to be taken offshore after it is recovered to prevent a taxable remittance.
10.Paragraphs 9 to 11 provides the commencement rules for the changes made by the Schedule.
