Clause 314 - Deposit schemes

Part of Finance (No. 2) Bill – in the House of Commons at 3:30 pm on 20 June 2023.

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Amendments made: 18, page 236, line 10, leave out “VAT that would, apart from section 55C(3),” and insert

“the VAT in respect of the deposit amount that, on the applicable assumption, would”

This amendment introduces an assumption that is intended to clarify how, in the case of deposit amounts that are not repaid, the liability to account for VAT works.

Amendment 19, page 236, line 14, at end insert—

“(2A) The applicable assumption is that, in the case of those goods, section 55C(3) is ignored and the deposit amount and the price payable for the goods are regarded instead as indistinguishable parts of the consideration for the supply of the goods.”—(Victoria Atkins.)

This amendment makes it clear that, in calculating the VAT liability, unreturned deposit amounts and the price payable for the goods are treated in exactly the same way.

Third Reading