Value Added Tax Act 1994 Schedule 10 paragraph 40

Benefit of consideration for grant accruing to a person other than the grantor

Paragraph 40 of Schedule 10 deals with situations where the benefit of the payment for a land grant goes to someone other than the person who actually makes the grant, and explains how VAT responsibilities are reallocated in such cases.

• Where the benefit of consideration for a grant of an interest in, right over, or licence to occupy land goes to someone other than the grantor, that person is called "the beneficiary"
• The beneficiary is treated for VAT purposes as if they were the person making the grant
• Any input tax incurred by the actual grantor that relates to the grant is treated as input tax of the beneficiary instead
• This ensures the VAT obligations and entitlements follow the economic benefit of the transaction rather than its legal form