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9 1984

FINANCE ACT, 1984

PART III

Value-Added Tax

Interpretation ( Part III ).

84. —In this Part—

the Act of 1976” means the Finance Act, 1976 ;

the Act of 1983” means the Finance Act, 1983 ;

the Principal Act” means the Value-Added Tax Act, 1972 .

Amendment of section 1 (interpretation) of Principal Act.

85. Section 1 of the Principal Act is hereby amended—

(a) by the insertion in subsection (1) after the definition of “business” of the following definition:

“clothing' does not include footwear;”,

and

(b) by the insertion in the said subsection (1) after the definition of “flat-rate farmer” of the following definition:

“‘footwear’ includes shoes, boots, slippers and the like but does not include stockings, under-stockings, socks, ankle-socks or similar articles or footwear without soles or footwear which is or incorporates skating or swimming equipment;”.

Amendment of section 8 (accountable persons) of Principal Act.

86. Section 8 of the Principal Act is hereby amended—

(a) in subsection (1) (inserted by the Finance Act, 1978 ) by the insertion after “in the course” of “or furtherance”,

(b) in subsection (3) (inserted by the Finance Act, 1978 )—

(i) in subparagraph (c) (ii) (inserted by the Finance (No. 2) Act, 1981 ), by the insertion after “taxable goods” of “(not being goods chargeable at either of the rates specified in paragraphs (a) and (c) of subsection (1) of section 11 which were produced or manufactured by him wholly or mainly from materials chargeable at the rate specified in paragraph (b) of that subsection)”, and

(ii) by the substitution of the following paragraph for paragraph (e) (inserted by the Finance (No. 2) Act, 1981 ):

“(e) a person, other than a person to whom paragraph (a), (b) or (c) applies, for whose supply of taxable goods and services the total consideration has not exceeded and is not likely to exceed £12,000 in any continuous period of twelve months:

Provided that, where in the case of two or more persons one of whom exercises control over one or more of the other persons, supplies of goods of the same class or of services of the same nature are made by two or more of those persons, the total of the consideration relating to the said supplies shall, for the purposes of the application of paragraphs (c) and (e) in relation to each of the persons aforesaid who made the said supplies be treated as if all of the supplies in question had been made by each of the last-mentioned persons.”,

and

(c) by the insertion after subsection (3A) (inserted by the Finance Act, 1982 ) of the following subsection:

“(3B) In this section ‘control’, in relation to a body corporate, means the power of a person to secure, by means of the holding of shares or the possession of voting power in or in relation to that or any other body corporate, or by virtue of any powers conferred by the articles of association or other document regulating that or any other body corporate, that the affairs of the first-mentioned body corporate are con ducted in accordance with the wishes of that person, and, in relation to a partnership, means the right to a share of more than one-half of the assets, or of more than one-half of the income, of the partnership.”.

Amendment of section 11 (rates of tax) of Principal Act.

87. Section 11 of the Principal Act is hereby amended—

(a) in subsection (1) (inserted by the Value-Added Tax (Amendment) Act, 1978 )—

(i) by the insertion after paragraph (aa) (inserted by the Act of 1983) of the following paragraph:

“(aaa) 8 per cent of the amount on which tax is chargeable in relation to the supply of goods of a kind specified in the Seventh Schedule,”,

and

(ii) by the insertion in paragraph (c) (inserted by the Finance Act, 1980 ) after “(aa)” of “, (aaa)”,

(b) in subsection (7) (inserted by the Act of 1976), by the insertion in paragraph (e) (i) after “subsection (1) (aa)” of “, subsection (1) (aaa)”, and

(c) in subsection (8), by the substitution in paragraph (a) (inserted by the Finance Act, 1973 ) of “Second, Third, Sixth or Seventh” for “Second, Third or Sixth”.

Amendment of section 15 (charge of tax on imported goods) of Principal Act.

88. Section 15 of the Principal Act is hereby amended by the insertion after paragraph (aa) (inserted by the Act of 1983) of subsection (1) of the following paragraph:

“(aaa) on goods of a kind specified in the Seventh Schedule at the percentage specified in section 11 (1) (aaa) of the value of the goods, and”.

Amendment of section 18 (inspection and removal of records) of Principal Act.

89. Section 18 of the Principal Act is hereby amended—

(a) by the substitution of the following subsection for subsection (1):

“(1) (a) For the purposes of this Act and regulations, an authorised officer may at all reasonable times enter any premises or place where he has reason to believe that business is carried on or anything is done in connection with business and—

(i) may require the person carrying on the business, or any person on those premises or in that place who is employed by the person carrying on the business or who is associated with him in the carrying on of the business, to produce any books, records, accounts or other documents relating to the business or to any other business which he has reason to believe may be, or have been, connected with the said business or have, or have had, trading relations with the said business,

(ii) may, if he has reason to believe that any of the books, records, accounts or other documents, which he has required to be produced to him under the provisions of this subsection have not been so produced, search in those premises or that place for those books, records, accounts or other documents,

(iii) may, in the case of any such books, records, accounts or other documents produced to or found by him, take copies of or extracts from them and remove and retain them for such period as may be reasonable for their further examination or for the purposes of any proceedings for the recovery of a penalty in relation to tax,

(iv) may, if he has reason to believe that goods connected with taxable supplies or importations are held on those premises or in that place and that particulars of such goods have not been kept and retained, as required by this Act or by regulations, in the books, records, accounts or other documents of the business or of any other business similarly required to keep and retain particulars of those goods, search those premises or that place for the said goods and, on their discovery, examine and take particulars of them,

(v) may require the person carrying on the business, or any person on those premises or in that place, who is employed by the person carrying on the business or who is associated with him in the carrying on of the business, to give the authorised officer all reasonable assistance.

(b) Nothing in this subsection shall be construed as requiring any person carrying on a profession, or any person employed by any person carrying on a profession, to produce to an authorised officer any documents relating to a client, other than such documents as are material to the tax affairs of the person carrying on the profession, and, in particular, he shall not be required to disclose any information or professional advice of a confidential nature given to a client.”,

and

(b) by the deletion of subsection (2).

Amendment of section 26 (penalties generally) of Principal Act.

90. Section 26 of the Principal Act is hereby amended, as respects non-compliance occurring on or after the date of passing of this Act—

(a) in subsection (1), by the deletion of “18 (2)”, and

(b) in subsection (3A), by the substitution of “subsection (3) of section 18 or with a requirement of an authorised officer under that section” for “section 18 (3)”.

Amendment of section 32 (regulations) of Principal Act.

91. Section 32 of the Principal Act is hereby amended—

(a) by the insertion in subsection (1) after paragraph (v) of the following paragraph:

“(w) the determination of average build for the purposes of paragraph (xvii) of the Second Schedule;”, and

(b) by the insertion in subsection (2A) after “section 15” of “or in relation to the matter specified in subsection (1) (w)”.

Amendment of Second Schedule to Principal Act.

92. —The Second Schedule (inserted by the Act of 1976) to the Principal Act is hereby amended—

(a) by the substitution for paragraph (xvii) of the following paragraph:

“(xvii) articles of children's personal clothing of sizes which do not exceed the sizes of those articles appropriate to children of average build of 10 years of age (a child whose age is 10 years or 10 years and a fraction of a year being taken for the purposes of this paragraph to be a child of 10 years of age), but excluding—

(a) articles of clothing made wholly or partly of fur skin other than garments merely trimmed with fur skin, unless the trimming has an area greater than one-fifth of the area of the outside material, and

(b) articles of clothing which are not described, labelled, marked or marketed on the basis of age or size;”,

and

(b) by the substitution for paragraph (xviii) of the following paragraphs:

“(xviii) sanitary towels and sanitary tampons;

(xviiia) footwear;”.

Amendment of Third Schedule to Principal Act.

93. —The Third Schedule (inserted by the Act of 1976) to the Principal Act is hereby amended—

(a) in Part I—

(i) by the deletion in paragraph (x) (b) of “concrete,”, and

(ii) by the insertion in paragraph (xxviii) after “Second” of “, Sixth or Seventh”,

and

(b) in Part II, by the substitution of the following paragraph for paragraph (viii):

“(viii) the hiring of goods specified in paragraphs (xvii) and (xviii) of the Second Schedule and paragraph (i) of the Seventh Schedule.”.

Amendment of Sixth Schedule to Principal Act.

94. —The Sixth Schedule (inserted by the Act of 1983) to the Principal Act is hereby amended—

(a) by the insertion after paragraph (ii) of the following paragraph:

“(iia) concrete ready to pour;”,

and

(b) by the insertion after paragraph (iii) of the following paragraph:

“(iiia) promotion of or admission to live theatrical or musical performances, including circuses, but not including—

(a) dances to which section 11 (7) relates, or

(b) performances in conjunction with which facilities are available for the consumption of food or drink during all or part of the performance by persons attending the performance;”.

Insertion of Seventh Schedule in Principal Act.

95. —The Principal Act is hereby amended by the insertion after the Sixth Schedule (inserted by the Act of 1983) of the following Schedule:

“SEVENTH SCHEDULE

Goods Chargeable at the Rate Specified in Section 11 (1) (aaa)

(i) Articles of personal clothing and textile handkerchiefs, excluding—

(a) articles of clothing made wholly or partly of fur skin, other than garments merely trimmed with fur skin unless the trimming has an area greater than one-fifth of the area of the outside material, and

(b) articles of personal clothing of a kind specified in paragraphs (xvii) and (xviii) of the Second Schedule;

(ii) (a) fabrics, yarn, thread and leather, of a kind normally used in the manufacture of clothing, including elastics, tapes and padding materials in the form supplied for the manufacture of clothing, and

(b) yarn of a kind normally used in the manufacture of clothing fabrics.”.

Rate of tax in relation to short-term hiring of certain goods.

96. —Notwithstanding the provisions of section 11 of the Principal Act, the rate of value-added tax chargeable on the following services shall be 18 per cent. of the amount in respect of which tax is chargeable in relation to those services:

(a) the service specified in paragraph (ii) of Part II of the Third Schedule to the Principal Act, and

(b) the service consisting of the hiring to a person, under an agreement of the kind specified in the said paragraph (ii) of a tent or of a vehicle designed and constructed, or adapted, for the conveyance of persons by road.