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HMRC internal manual

Residence, Domicile and Remittance Basis Manual

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Remittance Basis: Exemptions: Public access rule - Condition D - relevant VAT relief

Condition D (ITA07/s809Z(10)) is met if the property attracts a relevant VAT relief.

Condition D contains four further sub-conditions (ITA07/s809Z(1)) only one of which needs to be met for the property to attract a relevant VAT relief.

  1. Article 5(1) of the Value Added Tax (Imported Goods) Relief Order 1984 applies in relation to the importation of the property, or
  2. Article 5(1) of the Value Added Tax (Imported Goods) Relief Order 1984 would apply if the requirements that the importation be from a third country and that the property be imported for a purpose other than sale were disregarded, or
  3. Article 576(3)(a) of Commission Regulation (EEC) 2454/93 applies in relation to the property. This Regulation is concerned with relief from import duties for works of art etc imported for the purposes of exhibition, with a view to possible sale.
  4. Article 576(3)(a) of Commission Regulation (EEC) 2454/93 would apply if the requirement that the importation be from a third country was disregarded.

In this context ‘third country’ means a place outside the Member States of the European Union.

The second and fourth conditions are required to ensure that, where the conditions are met, the remittance basis exemption scheme applies to property imported from within the European Union, works of art already in the UK and goods imported for sale which would not otherwise be covered by the existing VAT scheme.

Where Condition B of ITA07/s809Z - the public access condition - is not met when the property is imported into the UK it is to be assumed, in considering whether the property attracts a relevant VAT relief, that the property was imported at the point that the property is made available for public access, thereby deeming the relevant VAT relief provisions to apply.