Value Added Tax (Sport, Sports Competitions and Physical Education) Order 1999
| Jurisdiction | UK Non-devolved |
| Citation | SI 1999/1994 |
| Year | 1999 |
1999 No. 1994
VALUE ADDED TAX
The Value Added Tax (Sport, Sports Competitions and Physical Education) Order 1999
Made 14th July 1999
Laid before the House of Commons 20th July 1999
Coming into force 1st January 2000
The Treasury, in exercise of the powers conferred on them by sections 31(2) and 96(9) of the Value Added Tax Act 19941and of all other powers enabling them in that behalf, hereby make the following Order:
1. This Order may be cited as the Value Added Tax (Sport, Sports Competitions and Physical Education) Order 1999 and shall come into force on 1st January 2000 and shall have effect in relation to supplies made on or after that date.
2. Group 10 (Sport, Sports Competitions and Physical Education) of Schedule 9 to the Value Added Tax Act 1994 shall be varied as follows.
3. In Items 2 and 3 and Notes (1), (2) and (3) for the words “a non-profit making body” there shall be substituted “an eligible body”.
4. After Note (2) there shall be inserted–
“2A Subject to Notes (2C) and (3), in this Group “eligible body” means a non-profit making body which–
(a) is precluded from distributing any profit it makes, or is allowed to distribute any such profit by means only of distributions to a non-profit making body;
(b) applies in accordance with Note (2B) any profits it makes from supplies of a description within Item 2 or 3; and
(c) is not subject to commercial influence.
2B For the purposes of Note (2A)(b) the application of profits made by any body from supplies of a description within Item 2 or 3 is in accordance with this Note only if those profits are applied for one or more of the following purposes, namely–
(a) the continuance or improvement of any facilities made available in or in connection with the making of the supplies of those descriptions made by that body;
(b) the purposes of a non-profit making body.
2C In determining whether the requirements of Note (2A) for being an eligible body are satisfied in the case of any body, there shall be disregarded any distribution of amounts representing unapplied or undistributed profits that falls to be made to the body’s members on its winding-up or dissolution.”.
5. After Note (3) there shall be inserted–
“4 For the purposes of this Group a body shall be taken, in relation to a sports supply, to be subject to commercial influence if, and only if, there is a time in the relevant period when–
(a) a relevant supply was made to that body by a person associated with it at that time;
(b) an emolument was paid by that body to such a person;
(c) an agreement existed for either or both of the following to take place after the end of that period, namely–
(i) the making of a relevant supply to that body by such a person; or
(ii) the payment by that body to such a person of any emoluments.
5 In this Group “the relevant period”, in relation to a sports supply, means–
(a) where that supply is one made before 1st January 2003, the period beginning with 14th January 1999 and ending with the making of that sports supply; and
(b) where that supply is one made on or after 1st January 2003, the period of three years ending with the making of that sports supply.
6 Subject to Note (7), in this Group “relevant supply”, in relation to any body, means a supply falling within any of the following paragraphs–
(a) the grant of any interest in or right over land which at any time in the relevant period was or was expected to become sports land;
(b) the grant of any licence to occupy any land which at any such time was or was expected to become sports land;
(c) the grant, in the case of land in Scotland, of any personal right to call for or be granted any such interest or right as is mentioned in paragraph (a) above;
(d) a supply arising from a grant falling within paragraph (a), (b) or (c) above, other than a grant made before 1st April 1996;
(e) the supply of any services consisting in the management or administration of any facilities provided by that body;
(f) the supply of any goods or services for a consideration in excess of what would have been agreed between parties entering into a commercial transaction at arm’s length.
7 A supply which has been, or is to be or may be, made by any person shall not be taken, in relation to a sports supply made by any body, to be a relevant supply for the purposes of this Group if–
(a) the principal purpose of that body is confined, at the time when the sports supply is made, to the provision for employees of that person of facilities for use for or in connection with sport or physical recreation, or both;
(b) the supply in question is one made by a charity or local authority or one which (if it is made) will be made by a person who is a charity or local authority at the time when the sports supply is made;
(c) the supply in question is a grant falling within Note (6)(a) to (c) which has been made, or (if it is made) will be made, for a nominal consideration;
(d) the supply in question is one arising from such a grant as is mentioned in paragraph (c) above and is not itself a supply the consideration for which was, or will or may be, more than a nominal consideration; or
(e) the supply in question–
(i) is a grant falling within Note (6)(a) to (c) which is made for no consideration; but
(ii) falls to be treated as a supply of goods or services, or (if it is made)...
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