asked the Chancellor of the Exchequer whether, in view of the fact that Clause 13 of the Finance Bill states that the amendments to value added tax legislation which are proposed in Schedule 6 to the Bill are mainly for the purpose of giving effect to new Community provisions, he will indicate what amendments to the legislation are proposed in the schedule which are not for that purpose.
With the exception of the three provisions set out below,
|UNITED KINGDOM NET PRIVATE DIRECT INVESTMENT OVERSEAS*|
|* Excluding oil.|
|† The original six member States up to 1972; the eight other member States thereafter.|
|‡ Including Pakistan up to 1971 and Bangladesh from 1972.|
|§ Components do not always add to the total because each figure has been rounded independently.|
all the changes in Schedule 6 are directly consequential on the Sixth Council Directive on VAT. The opportunity offered by the need to restate in consolidated form the provisions of the Finance Act 1972 has been taken to include three changes on technical matters, not directly consequential on the Directive. None of these three changes involves any alteration in existing administrative practice. The three proposals are:
In Schedule 6:—section 3(7) and section 4(1)(c) would provide directly for regulating the allowance of input tax to a registered person who intends to make taxable supplies but has not yet begun to do so;
Section 3(8)(c) would provide for regulating the allowance of input tax to a person who has ceased to be registered;
Schedule 2, paragraph 7(c) would exempt from tax any assets of a person ceasing to be registered if he acquired them before the beginning of VAT and has had no purchase tax rebate on them.
The allowance of input tax to a person intending to make taxable supplies is at present regulated by conditionally registering him under Schedule I to the Finance Act 1972. The other two proposals are to give statutory cover to existing extra-statutory concessions.