Section 112 — Value Added Tax Regulations 1995: Interpretation of Part XV

Interpretation of Part XV 112 — 1 Any expression used in this Part to which a meaning is given in Part XIV of these Regulations shall, unless the contrary intention appears, have the same meaning in this Part as it has in that Part and in particular, exempt supplies and taxable supplies shall be accorded the same meanings as defined in regulation 110 above .

2 Any reference in this Part to a capital item shall be construed as a reference to a capital item to which this Part applies by virtue of regulation 113, being an item which a person who has or acquires an interest in the item in question (hereinafter referred to as “the owner”) uses in the course or furtherance of a business carried on by him, and for the purpose of that business, otherwise than solely for the purpose of selling the item.

3 In this regulation and in regulation 114, an interest includes an interest which is treated as being supplied to a person under paragraph 37(1) of Schedule 10 to the Act provided that the numerator of the fraction in paragraph 37(3) of that Schedule is 36 or more.

4 The reference to “owner” in paragraph (2) shall be taken to refer to—

a subject to sub-paragraph (b), the transferee where the whole or part of a capital item is transferred from one person to another and that transfer is not treated as a supply for the purposes of VAT ;

and b the representative member of a group under section 43 of the Act if the capital item is owned by a member of the group.

5 Where the owner is a transferee or representative member, that person shall be treated as having done everything that the transferor or group member (as may be the case) has done in respect of the capital item.