Value Added Tax Act 1994 Schedule 10 paragraphs 31–34

Supplementary provisions

Schedule 10 paragraphs 31 to 34 provide supplementary rules supporting the option to tax land and buildings, covering the timing of grants and supplies, mixed-use buildings, key definitions drawn from other schedules, and general interpretation provisions including the meaning of "connected persons."

• Where an option to tax takes effect after a grant is treated as having been made, the option still applies to any supplies arising from that grant which occur after the option's effective date — the grant is treated as if it were made after the option took effect.
• Where a building is partly designed or intended for residential or charitable use and partly for other purposes, the rules for apportioning supplies between those uses (as set out in Note 10 of Group 5 of Schedule 8) apply to the option to tax provisions.
• Key terms used throughout the option to tax rules — such as "dwelling," "completion," "construction," "grant," "relevant charitable purpose," and "relevant residential purpose" — take their meanings from specified notes in Schedules 8 and 9 of the Act.
• Both "notification" and "permission" must be in writing; whether persons are "connected" is determined under Corporation Tax Act 2010 rules, but two companies are not treated as connected merely because both are controlled by the Crown, a government minister, a government department, or a Northern Ireland department.