Value Added Tax Act 1994

Meaning of “relevant associate” U.K.

[F1 3. (1) This paragraph explains for the purposes of this Part of this Schedule what is meant by a “relevant associate” in a case where a [F2 person] (“the opter”) exercises an option to tax in relation to any building or land.

(2) A [F3 person] is a relevant associate of the opter if under sections 43A to 43D (groups of companies) the [F3 person]—

(a) was treated as a member of the same group as the opter at the time when the option first had effect,

(b) has been so treated at any later time when the opter had a relevant interest in the building or land, or

(c) has been treated as a member of the same group as a [F4 person] within paragraph (a) or (b) of this sub-paragraph at a time when [F5 that person] had a relevant interest in the building or land.

(3) But a [F6 person (“P”)] ceases to be a relevant associate of the opter in relation to the building or land in the following circumstances.

(4) [F7 P] ceases to be a relevant associate of the opter in relation to the building or land at the time when all of the following conditions are first met—

(a) [F8 P] has no relevant interest in the building or land [F9 ,

(aa) where [F10 P] has disposed of such an interest, it is not the case that a supply for the purposes of the charge to VAT in respect of the disposal—

(i) is yet to take place, or

(ii) would be yet to take place if one or more conditions (such as the happening of an event or the doing of an act) were to be met,]

(b) [F11 P] or the opter is not treated under sections 43A to 43D as a member of the group mentioned above, and

(c) [F12 P] is not connected with any person who has a relevant interest in the building or land where that person is the opter or another relevant associate of the opter.

(5) [F13 P] also ceases to be a relevant associate of the opter in relation to the building or land if [F13 P]—

(a) meets conditions specified in a public notice (see paragraph 4), or

(b) gets the prior permission of the Commissioners (also, see that paragraph).

The time when [F14 P] ceases to be a relevant associate of the opter is determined in accordance with that paragraph.

(6) In this paragraph “relevant interest in the building or land” means an interest in, right over or licence to occupy the building or land (or any part of it).]

Textual Amendments

F1 Sch. 10 substituted (with effect in accordance with art. 1(2) of the amending S.I.) by The Value Added Tax (Buildings and Land) Order 2008 (S.I. 2008/1146), arts. 1(1), 2 (with Sch. 2)

F2 Word in Sch. 10 para. 3(1) substituted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 15(2)(a); S.I. 2019/1348, reg. 2

F3 Word in Sch. 10 para. 3(2) substituted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 15(2)(b)(i); S.I. 2019/1348, reg. 2

F4 Word in Sch. 10 para. 3(2)(c) substituted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 15(2)(b)(i); S.I. 2019/1348, reg. 2

F5 Words in Sch. 10 para. 3(2)(c) substituted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 15(2)(b)(ii); S.I. 2019/1348, reg. 2

F6 Words in Sch. 10 para. 3(3) substituted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 15(2)(c); S.I. 2019/1348, reg. 2

F7 Word in Sch. 10 para. 3(4) substituted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 15(2)(d)(i); S.I. 2019/1348, reg. 2

F8 Word in Sch. 10 para. 3(4)(a) substituted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 15(2)(d)(ii); S.I. 2019/1348, reg. 2

F9 Words in Sch. 10 para. 3(4) substituted (with effect in accordance with art. 1(2) of the amending S.I.) by The Value Added Tax (Buildings and Land) Order 2009 (S.I. 2009/1966), arts. 1(1), 3

F10 Word in Sch. 10 para. 3(4)(aa) substituted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 15(2)(d)(ii); S.I. 2019/1348, reg. 2

F11 Word in Sch. 10 para. 3(4)(b) substituted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 15(2)(d)(ii); S.I. 2019/1348, reg. 2

F12 Word in Sch. 10 para. 3(4)(c) substituted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 15(2)(d)(ii); S.I. 2019/1348, reg. 2

F13 Word in Sch. 10 para. 3(5) substituted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 15(2)(e)(i); S.I. 2019/1348, reg. 2

F14 Word in Sch. 10 para. 3(5) substituted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 15(2)(e)(ii); S.I. 2019/1348, reg. 2