Finance (No. 2) Act 1992 (c. 48)

(The document as of February, 2008)

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(4) Where--

(a) any person's taxable supplies for the time being fall to be taxed in accordance with this section; and

(b) that person makes a taxable supply of goods to a taxable person who has given, and not withdrawn, an undertaking to account for and pay any tax chargeable on supplies of goods made to him by the supplier in question,

it shall be for the person supplied, on the supplier's behalf, to account for and pay any tax on the supply of those goods, and not for the supplier.

(5) Where any person's taxable supplies for the time being fall to be taxed in accordance with this section, any acquisition from another member State by that person of any goods the first supply of which after their acquisition is to a person who under this section is required to account for and pay the tax on that supply shall be treated for the purposes of this Act as taking place outside the United Kingdom.

(6) The Commissioners may by regulations provide--

(a) for the form and manner in which any request under subsection (1) above, or any undertaking such as is mentioned in subsection (4)(b) above, is to be made or withdrawn;

(b) for the manner in which the making or withdrawal of any such undertaking is to be notified to the Commissioners;

(c) for a person whose taxable supplies for the time being fall to be taxed in accordance with this section to be under an obligation to notify the Commissioners if he makes any taxable supply to which subsection (4) above does not apply and which is not zero-rated;

(d) for prescribed provisions of this Act and of any other enactment (whenever passed) relating to value added tax to have effect, where under this section a person supplied with any goods is required to account for and pay any tax on the supply, as if that tax were on supplies or acquisitions made by him. "

35 For section 35 (supplies of dutiable goods in warehouse) there shall be substituted the following section--

" 35 Goods subject to a warehousing regime

(1) Where--

(a) any goods have been removed from a place outside the member States and have entered the territory of the Community;

(b) the material time for any acquisition of those goods from another member State or for any supply of those goods is while they are subject to a warehousing regime and before the duty point; and

(c) those goods are not mixed with any dutiable goods which were produced or manufactured in the United Kingdom or acquired from another member State,

then the acquisition or supply mentioned in paragraph (b) above shall be treated for the purposes of this Act as taking place outside the United Kingdom.

(2) Subsection (3) below applies where--

(a) any dutiable goods are acquired from another member State; or

(b) any person makes a supply of--

(i) any dutiable goods which were produced or manufactured in the United Kingdom or acquired from another member State; or

(ii) any goods comprising a mixture of goods falling within sub-paragraph (i) above and other goods.

(3) Where this subsection applies and the material time for the acquisition or supply mentioned in subsection (2) above is while the goods in question are subject to a warehousing regime and before the duty point, that acquisition or supply shall be treated for the purposes of this Act as taking place outside the United Kingdom if the material time for any subsequent supply of those goods is also while the goods are subject to the warehousing regime and before the duty point.

(4) Where the material time for any acquisition or supply of any goods in relation to which subsection (3) above applies is while the goods are subject to a warehousing regime and before the duty point but the acquisition or supply nevertheless falls, for the purposes of this Act, to be treated as taking place in the United Kingdom--

(a) that acquisition or supply shall be treated for the purposes of this Act as taking place at the earlier of the following times, that is to say, the time when the goods are removed from the warehousing regime and the duty point; and

(b) in the case of a supply, any tax payable on the supply shall be paid (subject to any regulations under subsection (5) below)--

(i) at the time when the supply is treated as taking place under paragraph (a) above; and

(ii) by the person by whom the goods are so removed or, as the case may be, together with the duty or agricultural levy, by the person who is required to pay the duty or levy.

(5) The Commissioners may by regulations make provision--

(a) for enabling goods to be removed from a warehousing regime by a taxable person without payment of tax chargeable in respect of those goods by virtue of subsection (4)(a) above; and

(b) for that tax to be accounted for together with the tax chargeable on supplies of goods and services by that person.

(6) In this section--

"dutiable goods" means any goods which are subject--
(a)
to a duty of excise; or
(b)
in accordance with any provision for the time being having effect for transitional purposes in connection with the accession of any State to the European Communities, to any Community customs duty or agricultural levy of the Economic Community;
"the duty point", in relation to any goods, means--
(a)
in the case of goods which are subject to a duty of excise, the time when the requirement to pay the duty on those goods takes effect; and
(b)
in the case of goods which are not so subject, the time when any Community customs debt in respect of duty on the entry of the goods into the territory of the Community would be incurred or, as the case may be, the corresponding time in relation to any such duty or levy as is mentioned in paragraph (b) of the definition of dutiable goods;
"material time"--
(a)
in relation to any acquisition or supply the time of which is determined in accordance with regulations under section 5(9) or 8B(3) above, means such time as may be prescribed for the purpose of this section by those regulations;
(b)
in relation to any other acquisition, means the time of the event which, in relation to the acquisition, is the first relevant event for the purposes of taxing it; and
(c)
in relation to any other supply, means the time when the supply would be treated as taking place in accordance with subsection (2) of section 4 above if paragraph (c) of that subsection were omitted;
"warehouse" means any warehouse where goods may be stored in any member State without payment of any one or more of the following, that is to say--
(a)
Community customs duty;
(b)
any agricultural levy of the Economic Community;
(c)
value added tax on the importation of the goods into any member State;
(d)
any duty of excise or any duty which is equivalent in another member State to a duty of excise.

(7) References in this section to goods being subject to a warehousing regime is a reference to goods being kept in a warehouse or being transported between warehouses (whether in the same or different member States) without the payment in a member State of any duty, levy or tax; and references to the removal of goods from a warehousing regime shall be construed accordingly. "

36 (1) In subsection (1) of section 36 (capital goods), after "supply" there shall be inserted "acquisition".

(2) In subsection (2) of that section, after "supplied" there shall be inserted "acquired".

37 For section 37 (trading stamp schemes) there shall be substituted the following section--

" 37 Trading stamp schemes

The Commissioners may by regulations modify sections 10 and 10A of this Act and Schedules 4 and 4A to this Act for the purpose of providing (in place of the provision for the time being contained in those sections and Schedules) for the manner of determining for the purposes of this Act the value of--

(a) a supply of goods, or

(b) a transaction in pursuance of which goods are acquired from another member State,

in a case where the goods are supplied or acquired under a trading stamp scheme (within the meaning of the [1964 c. 71.] Trading Stamps Act 1964 or the [1965 c. 6 (N.I.).] Trading Stamps Act (Northern Ireland) 1965) or under any scheme of an equivalent description which is in operation in another member State. "

General

38 In section 38 (which gives effect to Schedule 7), after "effect" there shall be inserted "subject to section 46A(6) below,".

39 (1) In subsection (1A) of section 39--

(a) in paragraph (b) (evasion by obtaining refund), after "under" there shall be inserted "section 20A,";

(b) after that paragraph there shall be inserted the following paragraph--

" (ba) a refund under any regulations made by virtue of section 8C(5) above; or " ; and

(2) In subsection (2B)(a) of that section (penalties in the case of refunds)--

(a) after "under", in the first place where it occurs, there shall be inserted "section 20A,"; and

(b) after "22 above" there shall be inserted "for a refund under any regulations made by virtue of section 8C(5) above".

(3) In subsection (4) of that section (handling goods in respect of which there is evasion), for "or on the importation of the goods" there shall be substituted "on the acquisition of the goods from another member State or on the importation of the goods from a place outside the member States".

40 In subsection (1) of section 40 (appeals)--

(a) in paragraph (b), for the words from "or, subject" to the end of the paragraph there shall be substituted "on the acquisition of goods from another member State or, subject to subsection (5) below, on the importation of goods from a place outside the member States";

(b) after paragraph (d) there shall be inserted the following paragraph--

" (da) the amount of any refunds under section 20A above; "

" (fa) any claim for a refund under any regulations made by virtue of section 8C(5) above; "

(d) after paragraph (j) there shall be inserted the following paragraph--

" (ja) any direction under paragraph 1 of Schedule 4A to this Act; "

(e) in paragraph (m), at the end of sub-paragraph (ii) there shall be inserted " or

(iii) under paragraph 4A of that Schedule, " ;

(f) in paragraph (n), after "under" there shall be inserted "section 32A(7) above or";

(g) in paragraph (o), for "17" there shall be substituted "17A".

41 (1) In subsection (1) of section 41 (supplies spanning change of rate), at the end there shall be inserted "or exempt or zero-rated acquisitions".

(2) After subsection (3) of that section there shall be inserted the following subsection--

" (3A) Where--

(a) any acquisition of goods from another member State which is affected by the change would not have been affected (in whole or in part) if it had been treated as taking place at the time of the event which, in relation to that acquisition, is the first relevant event for the purposes of taxing the acquisition; or

(b) any acquisition of goods from another member State which is not so affected would have been affected (in whole or in part) if it had been treated as taking place at the time of that event,

the rate at which tax is chargeable on the acquisition, or any question whether it is zero-rated or exempt, shall, if the person making the acquisition so elects, be determined as at the time of that event. "

(3) After subsection (5) of that section there shall be inserted the following subsection--

" (6) References in this section to an acquisition being zero-rated are references to an acquisition of goods from another member State being one in relation to which section 16(3) above provides for no tax to be chargeable. "

42 (1) In subsection (1) of section 43 (failure of resolution under the [1968 c. 2.] Provisional Collection of Taxes Act 1968)--

(a) in paragraph (a), after "section 10(2) above" there shall be inserted "or on the acquisition of goods from another member State by reference to a value determined under section 10A(3) above"; and

(b) in paragraph (b), after "supply" there shall be inserted "or acquisition".

(2) In subsection (2) of that section--

(a) in paragraph (a), after "the said section 10(2)" there shall be inserted "or on the acquisition of goods from another member State by reference to a value determined under the said section 10A(3)"; and

(b) in paragraph (b), after "supply" there shall be inserted "or acquisition".

(3) In subsection (3) of that section, after "20" there shall be inserted "20A".

43 In section 46 (service of notices), for the words from "at his" onwards there shall be substituted "or his tax representative at the last or usual residence or place of business of that person or representative."

44 After section 46 there shall be inserted the following sections--

" 46A Taxation under the laws of other member States etc

(1) Subject to the following provisions of this section, references in this Act, in relation to another member State, to the law of that member State shall be construed as confined to so much of the law of that member State as for the time being has effect for the purposes of any Community instrument relating to value added tax.

(2) Subject to the following provisions of this section--

(a) references in this Act to a person being taxable in another member State are references to that person being taxable under so much of the law of that member State as makes provision for purposes corresponding, in relation to that member State, to the purposes of so much of this Act as makes provision as to whether a person is a taxable person; and

(b) references in this Act to goods being acquired by a person in another member State are references to goods being treated as so acquired in accordance with provisions of the law of that member State corresponding, in relation to that member State, to so much of this Act as makes provision for treating goods as acquired in the United Kingdom from another member State.

(3) Without prejudice to subsection (5) below, the Commissioners may by regulations make provision for the manner in which any of the following are to be or may be proved for any of the purposes of this Act, that is to say--

(a) the effect of any provisions of the law of any other member State;

(b) that provisions of any such law correspond or have a purpose corresponding, in relation to any member State, to or to the purpose of any provision of this Act.

(4) The Commissioners may by regulations provide--

(a) for a person to be treated for prescribed purposes of this Act as taxable in another member State only where he has given such notification, and furnished such other information, to the Commissioners as may be prescribed;

(b) for the form and manner in which any notification or information is to be given or furnished under the regulations and the particulars which it is to contain;

(c) for the proportion of any consideration for any transaction which is to be taken for the purposes of this Act as representing a liability, under the law of another member State, for value added tax to be conclusively determined by reference to such invoices or in such other manner as may be prescribed.

(5) In any proceedings (whether civil or criminal), a certificate of the Commissioners--

(a) that a person was or was not, at any date, taxable in another member State; or

(b) that any value added tax payable under the law of another member State has or has not been paid,

shall be sufficient evidence of that fact until the contrary is proved, and any document purporting to be a certificate under this subsection shall be deemed to be such a certificate until the contrary is proved.

(6) Without prejudice to the generality of any of the powers of the Commissioners under the information provisions of Schedule 7 to this Act, those powers shall, for the purpose of facilitating compliance with any Community obligations, be exercisable with respect to matters that are relevant to a charge to value added tax under the law of another member State, as they are exercisable with respect to matters that are relevant for any of the purposes of this Act.

(7) The reference in subsection (6) above to the information provisions of Schedule 7 to this Act is a reference to the provisions of that Schedule relating to--

(a) the keeping of accounts;

(b) the making of returns and the submission of other documents to the Commissioners;

(d) the keeping and preservation of records; and

(e) the furnishing of information and the production of documents.

46B Territories included in references to other member States etc

(1) The Commissioners may by regulations provide for the territory of the Community, or for the member States, to be treated for any of the purposes of this Act as including or excluding such territories as may be prescribed.

(2) Without prejudice to the generality of the powers conferred by subsection (1) and section 24(1) above, the Commissioners may, for any of the purposes of this Act, by regulations provide for prescribed provisions of any customs and excise legislation to apply in relation to cases where any territory is treated under subsection (1) above as excluded from the territory of the Community, with such exceptions and adaptations as may be prescribed.

(3) In subsection (2) above the reference to customs and excise legislation is a reference to any enactment or subordinate or Community legislation (whenever passed, made or adopted) which has effect in relation to, or to any assigned matter connected with, the importation or exportation of goods.

(4) In subsection (3) above "assigned matter" has the same meaning as in the [1979 c. 2.] Customs and Excise Management Act 1979. "

45 After section 47 there shall be inserted the following section--

" 47A Meaning of "new means of transport"

(1) In this Act "means of transport" in the expression "new means of transport" means any of the following, that is to say--

(a) any ship exceeding 7.5 metres in length;

(b) any aircraft the take-off weight of which exceeds 1550 kilograms;

(i) has an engine with a cylinder capacity exceeding 48 cubic centimetres; or

(ii) is constructed or adapted to be electrically propelled using more than 7.2 kilowatts.

(2) For the purposes of this Act a means of transport shall be treated as new at any time unless at that time--

(a) a period of more than three months has elapsed since its first entry into service; and

(b) it has, since its first entry into service, travelled under its own power--

(i) in the case of a ship, for more than 100 hours;

(ii) in the case of an aircraft, for more than 40 hours; and

(iii) in the case of a land vehicle, for more than 3000 kilometres.

(3) The Treasury may by order vary this section--

(a) by adding or deleting any ship, aircraft or vehicle of a description specified in the order to or from those which are for the time being specified in subsection (1) above; and

(b) by altering, omitting or adding to the provisions of subsection (2) above for determining whether a means of transport is new.

(4) The Commissioners may by regulations make provision specifying the circumstances in which a means of transport is to be treated for the purposes of this section as having first entered into service. "

46 (1) In subsection (1) of section 48 (interpretation)--

(a) after "in this Act-" there shall be inserted the following definition--

" "another member State" means, subject to section 46B(1) above, any member State other than the United Kingdom, and "other member States" shall be construed accordingly; "

(b) after the definition of "ship" there shall be inserted the following definition--

" "subordinate legislation" has the same meaning as in the [1978 c. 30.] Interpretation Act 1978; "

(c) in the definition of "tax", at the end there shall be inserted "charged in accordance with the provisions of this Act";

(d) for the definition of "taxable person" there shall be substituted the following definition--

" "taxable person" means (subject to section 32B(3) above) a person who is a taxable person under section 2C above; " .

(2) After subsection (1) of that section there shall be inserted the following subsections--

" (1A) Subject to section 46B above--

(a) the question whether or not goods have entered the territory of the Community;

(b) the time when any Community customs debt in respect of duty on the entry of any goods into the territory of the Community would be incurred; and

shall for the purposes of this Act be determined (whether or not the goods in question are themselves subject to any such duties) according to the Community legislation applicable to goods which are in fact subject to such duties.

(1B) Any reference in this Act to the amount of any duty of excise on any goods shall be taken to be a reference to the amount of duty charged on those goods with any addition or deduction falling to be made under section 1 of the [1979 c. 8.] Excise Duties (Surcharges or Rebates) Act 1979. "

(3) In subsection (5) of that section, after "determined" there shall be inserted "(subject to any provision made under section 7(6) above)".

(4) After subsection (8) of that section there shall be inserted the following subsection--

" (9) References in this Act to being registered shall be construed in accordance with section 2C(3) of this Act and, (without prejudice to paragraph 2 of Schedule 10 to this Act) shall, in relation to registration under Schedule 1 to this Act or any provision of that Schedule, include a reference to being registered under the corresponding provision of any enactment re-enacted in that Schedule. "

47 In section 49 (refund of tax to Government of Northern Ireland)--

(a) for "or on the importation of goods by, that Government" there shall be substituted "that Government, on the acquisition of any goods by that Government from another member State or on the importation of any goods by that Government from a place outside the member States"; and

(b) after "supplies" there shall be inserted "acquisitions".

Registration in respect of supplies

48 (1) In sub-paragraph (1) of paragraph 1 of Schedule 1 (registration in respect of taxable supplies), for "registered becomes liable to be registered" there shall be substituted "registered under this Act becomes liable to be registered under this Schedule".

(2) In sub-paragraph (2) of that paragraph--

(a) after the word "registered", in the first place where it occurs, there shall be inserted "under this Act";

(b) after that word, in the second place where it occurs, there shall be inserted "under this Schedule".

(3) In sub-paragraph (4) of that paragraph--

(a) after "registered" there shall be inserted "under this Act"; and

(b) in paragraph (a), after "10 below" there shall be inserted "paragraph 6(2) of Schedule 1A to this Act or paragraph 6(3) of Schedule 1B to this Act".

(4) After sub-paragraph (4) of that paragraph there shall be inserted the following sub-paragraphs--

" (4A) A person shall be treated as having become liable to be registered under this Schedule at any time when he would have become so liable under the preceding provisions of this paragraph but for any registration which is subsequently cancelled under paragraph 10 below, paragraph 6(2) of Schedule 1A to this Act or paragraph 6(3) of Schedule 1B to this Act.

(4B) A person shall not cease to be liable to be registered under this Schedule except in accordance with paragraph 1A(5), 1B or 2 below. "

(5) In sub-paragraph (5) of that paragraph, after "supplied" there shall be inserted "and any taxable supplies which would not be taxable supplies apart from section 6(2B) of this Act."

49 (1) In each of sub-paragraphs (1) and (4)(b) of paragraph 1A of that Schedule (further provisions as to liability to be registered), after "registered" there shall be inserted "under this Schedule".

(2) In sub-paragraph (7) of that paragraph, after paragraph (b) there shall be inserted the following paragraph--

" (ba) any acquisition of goods from another member State by one of the constituent members in the course of the activities of the taxable person shall be treated as an acquisition by that person; " .

50 After paragraph 1A of that Schedule there shall be inserted the following paragraph--

" 1B A person who has become liable to be registered under this Schedule shall cease to be so liable at any time if the Commissioners are satisfied in relation to that time that he--

(a) has ceased to make taxable supplies; or

(b) is not at that time a person in relation to whom any of the conditions specified in paragraphs 1(1)(a) and (b) and (2)(a) and (b) above is satisfied. "

51 (1) In sub-paragraph (1) of paragraph 2 of that Schedule (cases where person ceases to be registered), for the words from "registered person" to "time" there shall be substituted "person who has become liable to be registered under this Schedule shall cease to be so liable at any time after being registered".

(2) In sub-paragraph (2) of that paragraph, after "be registered" there shall be inserted "under this Schedule".

(3) In sub-paragraph (3) of that paragraph, after "supplied" there shall be inserted "and any taxable supplies which would not be taxable supplies apart from section 6(2B) of this Act".

52 In paragraph 3(3) of that Schedule (notification of liability to be registered)--

(a) after the word "registered", in the first place where it occurs, there shall be inserted "by virtue of paragraph 1(1)(a) above"; and

(b) before that word, in the second place where it occurs, there shall be inserted "so".

53 In each of paragraphs 5 and 5A(1) of that Schedule (entitlement to be registered), after "registered" there shall be inserted "under this Act and is not already so registered".

54 In paragraph 7 of that Schedule (notification of end of liability or entitlement), at the end there shall be inserted "unless he would, when he so ceases, be otherwise liable or entitled to be registered under this Act if his registration and any enactment preventing a person from being liable to be registered under different provisions at the same time were disregarded."

55 In paragraph 7A of that Schedule (notification of end of liability or entitlement), at the end there shall be inserted "unless, in the case of a person ceasing as mentioned in sub-paragraph (a) above, he would, when he so ceases, be otherwise liable or entitled to be registered under this Act if his registration and any enactment preventing a person from being liable to be registered under different provisions at the same time were disregarded."

56 (1) In sub-paragraph (1) of paragraph 8A of that Schedule (cancellation of registration on request)--

(a) at the beginning there shall be inserted "Subject to sub-paragraph (1A) below"; and

(b) after "be registered" there shall be inserted "under this Schedule".

(2) After sub-paragraph (1) of that paragraph there shall be inserted the following sub-paragraphs--

" (1A) The Commissioners shall not under this paragraph cancel a person's registration with effect from any time unless they are satisfied that it is not a time when that person would be subject to a requirement to be registered under this Act.

(1B) In determining for the purposes of sub-paragraph (1A) above whether a person would be subject to a requirement to be registered at any time, so much of any provision of this Act as prevents a person from becoming liable to be registered when he is already registered or when he is so liable under any other provision shall be disregarded. "

(3) In sub-paragraph (2) of that paragraph (meaning of "registered person"), for the words from "includes" onwards there shall be substituted "is a reference to any person who is registered under this Schedule (including a person who was so registered before the coming into force of the paragraph in which the reference is contained)".

57 (1) In sub-paragraph (1) of paragraph 9 of that Schedule (cancellation of registration by the Commissioners), at the beginning there shall be inserted "Subject to sub-paragraph (1A) below".

(2) After sub-paragraph (1) of that paragraph there shall be inserted the following sub-paragraphs--

(1B) In determining for the purposes of sub-paragraph (1A) above whether a person would be subject to a requirement, or entitled, to be registered at any time, so much of any provision of this Act as prevents a person from becoming liable or entitled to be registered when he is already registered or when he is so liable under any other provision shall be disregarded. "

(3) In sub-paragraph (2) of that paragraph, at the end there shall be inserted "under this Schedule".

58 (1) In sub-paragraph (1) of paragraph 11 of that Schedule (exemption from registration), after "registration" there shall be inserted "under this Schedule".

(2) In sub-paragraph (2) of that paragraph, for "from registration under this paragraph" there shall be substituted "under this paragraph from registration under this Schedule".

Registration in respect of supplies and acquisitions from other member States

59 After Schedule 1 there shall be inserted the following Schedules--

" SCHEDULE 1A Registration in respect of Supplies from other member States

Liability to be registered

1 (1) A person who--

(a) is not registered under this Act; and

(b) is not liable to be registered under Schedule 1 to this Act,

becomes liable to be registered under this Schedule on any day if, in the period beginning with 1st January of the year in which that day falls, that person has made relevant supplies whose value exceeds £70,000.

(2) A person who is not registered or liable to be registered as mentioned in sub-paragraph (1)(a) and (b) above becomes liable to be registered under this Schedule where--

(a) that person has exercised any option, in accordance with the law of any other member State where he is taxable, for treating relevant supplies made by him as taking place outside that member State;

(b) the supplies to which the option relates involve the removal of goods from that member State and, apart from the exercise of the option, would be treated, in accordance with the law of that member State, as taking place in that member State; and

(3) A person who is not registered or liable to be registered as mentioned in sub-paragraph (1)(a) and (b) above becomes liable to be registered under this Schedule if he makes a supply in relation to which the following conditions are satisfied, that is to say--

(a) it is a supply of goods subject to a duty of excise;

(b) it involves the removal of the goods to the United Kingdom by or under the directions of the person making the supply;

(c) it is a transaction in pursuance of which the goods are acquired in the United Kingdom from another member State by a person who is not a taxable person;

(d) it is made at a time after the coming into force of this Schedule and in the course or furtherance of a business carried on by the supplier; and

(e) it is not anything which is treated as a supply for the purposes of this Act by virtue only of paragraph 5(1) or 5A of Schedule 2 to this Act.

(4) A person shall be treated as having become liable to be registered under this Schedule at any time when he would have become so liable under the preceding provisions of this paragraph but for any registration which is subsequently cancelled under paragraph 6(2) below, paragraph 10 of Schedule 1 to this Act or paragraph 6(3) of Schedule 1B to this Act.

(5) A person shall not cease to be liable to be registered under this Schedule except in accordance with paragraph 2 below.

(6) In determining for the purposes of this paragraph the value of any relevant supplies so much of the consideration for any supply as represents any liability of the supplier, under the law of another member State, for value added tax on that supply shall be disregarded.

2 (1) Subject to sub-paragraph (2) below, a person who has become liable to be registered under this Schedule shall cease to be so liable if at any time--

(a) the relevant supplies made by him in the year ending with 31st December last before that time did not have a value exceeding £70,000 and did not include any supply in relation to which the conditions mentioned in paragraph 1(3) above were satisfied; and

(b) the Commissioners are satisfied that the value of his relevant supplies in the year immediately following that year will not exceed £70,000 and that those supplies will not include a supply in relation to which those conditions are satisfied.

(2) A person shall not cease to be liable to be registered under this Schedule at any time when such an option as is mentioned in paragraph 1(2) above is in force in relation to him.

Notification of liability and registration

3 (1) A person who becomes liable to be registered under this Schedule shall notify the Commissioners of the liability within the period of thirty days after the day on which the liability arises.

(2) The Commissioners shall register any such person (whether or not he so notifies them) with effect from the day on which the liability arose or from such earlier time as may be agreed between them and him.

Request to be registered

4 (1) Where a person who is not liable to be registered under this Act and is not already so registered--

(a) satisfies the Commissioners that he intends--

(i) to exercise an option such as is mentioned in paragraph 1(2) above and, from a specified date, to make relevant supplies to which that option will relate;

(ii) from a specified date to make relevant supplies to which any such option that he has exercised will relate; or

(iii) from a specified date to make supplies in relation to which the conditions mentioned in paragraph 1(3) above will be satisfied;

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