The Value Added Tax (Amendment) (No. 2) Regulations 2001

Made1st March 2001

Laid before the House of Commons7th March 2001

Coming into force1st April 2001

The Commissioners of Customs and Excise, in exercise of the powers conferred on them by section 25(1) of, and paragraph 2(1), (7) and (11) of Schedule 11 to, the Value Added Tax Act 19941 and of all other powers enabling them in that behalf, hereby make the following regulations:

1.

These Regulations may be cited as the Value Added Tax (Amendment) (No. 2) Regulations 2001 and shall come into force on 1st April 2001.

2.

The Value Added Tax Regulations 19952 are amended as follows.

3.

In part VII (annual accounting)—

(a)

in regulation 52(1)(b), for “£300,000” substitute “£600,000”; and

(b)

in regulations 53(2)(a) and 54(1)(e) and (2), for “£375,000” substitute “£750,000”.

4.

In Part VIII (cash accounting)—

(a)

in regulation 58(1)(a), for “£350,000” substitute “£600,000”; and

(b)

in regulation 60(1), for “£437,500” substitute “£750,000”.

Martin Brown

Commissioner of Customs and Excise

New King’s Beam House

22 Upper Ground

London

SE1 9PJ

1st March 2001

(This note is not part of the Regulations)

These Regulations, which come into force on 1st April 2001, further amend Part VII (Annual Accounting) and Part VIII (Cash Accounting) of the Value Added Tax Regulations 1995 (S.I. 1995/2518) (the “principal Regulations”).

Regulation 3 increases the maximum turnover limit for entrants to the annual accounting scheme, prescribed in regulation 52(1)(b) of the principal Regulations, from £300,000 to £600,000. The maximum turnover limit for those already operating the scheme, prescribed in regulations 53(2)(a) and 54(1)(e) of the principal Regulations, is also increased from £375,000 to £750,000. Consequential amendment is made to regulation 54(2) of the principal Regulations.

Regulation 4 increases the maximum turnover limit for entrants to the cash accounting scheme, prescribed in regulation 58(1)(a) of the principal Regulations, from £350,000 to £600,000. The maximum turnover limit for those already operating the scheme, prescribed in regulation 60(1) of the principal Regulations, is also increased from £437,500 to £750,000.