The Value Added Tax (Increase of Registration Limits) Order 2005

Made16th March 2005

Laid before the House of Commons16th March 2005

Coming into force1st April 2005

The Treasury, in exercise of the powers conferred upon them by paragraph 15 of Schedule 1 and paragraph 9 of Schedule 3 to the Value Added Tax Act 19941, hereby make the following Order:

1.

This Order may be cited as the Value Added Tax (Increase of Registration Limits) Order 2005 and comes into force on 1st April 2005.

2.

In Schedule 1 to the Value Added Tax Act 1994 (registration in respect of taxable supplies)—

(a)

in paragraph 1(1)(a), (1)(b), (2)(a) and (2)(b), for “£58,000” substitute “£60,000” and;

(b)

in paragraphs 1(3) and 4(1) and (2), for “£56,000” substitute “£58,000”.

3.

In Schedule 3 to the Value Added Tax Act 1994 (registration in respect of acquisitions from other member States)—

(a)

in paragraph 1(1) and (2); and

(b)

in paragraph 2(1)(a), (1)(b) and (2),

for “£58,000” substitute “£60,000”.

Jim Murphy

Nick Ainger

Two of the Lords Commissioners of Her Majesty’s Treasury

16th March 2005

(This note is not part of the Order)

This Order increases the VAT registration limits for taxable supplies and for acquisitions from other member States from £58,000 to £60,000, with effect from 1st April 2005.

This Order also increases the limit for cancellation of registration in the case of taxable supplies from £56,000 to £58,000, and in the case of acquisitions from other member States from £58,000 to £60,000, with effect from 1st April 2005.

A full regulatory impact assessment has not been produced for this instrument, as it has no impact on business, charities or voluntary bodies.