FOREstalling

In The party’s over Neil Warren commented that a golf club (not exempt under VATA 1994 Sch 9 Gp 10) could obtain a VAT advantage by getting the members to pay their subscriptions for 2010 in December 2009 rather than in January 2010 triggering a tax point at 15% rather than at 17.5%.

The same point arises in respect of 2011. Before suggesting it to the committee I would like to understand why the anti-forestalling rules do not apply.

The draft rules for the forthcoming change seem to be much the same as FA 2009 Sch 3. So referring to that legislation the supplementary charge applied under para 3(5) if the aggregate of the ‘relevant consideration for every related supply of goods or services that spans the date of the VAT change’ is more than £100...