Schedule 10, Part 1, paragraph 13

This paragraph applies for the purposes of paragraph 12. A grant made by any person (“the grantor”) in relation to any land is made by a developer of the land if— the land is, or was intended or expected to be, a relevant capital item (see sub-paragraphs (3) to (5)), and the grant is made at an eligible time as respects that capital item (see sub-paragraph (6)). The land is a relevant capital item if— is a capital item in relation to the grantor. the land, or the building or part of a building on the land, The land was intended or expected to be a relevant capital item if the grantor, or a development financier, intended or expected that— would become a capital item in relation to the grantor or any relevant transferee. the land, or a building or part of a building on, or to be constructed on, the land, A person is a relevant transferee if the person is someone to whom the land, building or part of a building was to be transferred— in the course of a supply, or in the course of a transfer of a business or part of a business as a going concern. A grant is made at an eligible time as respects a capital item if it is made before the end of the period provided in the relevant regulations for the making of adjustments relating to the deduction of input tax as respects the capital item. But if— the grant is treated instead as if were not made at an ineligible time. a person other than the grantor is treated by paragraph 12(6) as making the grant of the land, and the grant is consequently treated as made at what would otherwise be an ineligible time, In this paragraph a “capital item”, in relation to any person, means an asset falling, in relation to the person, to be treated as a capital item for the purposes of the relevant regulations. In this paragraph “the relevant regulations”, as respects any item, means regulations under section 26(3) and (4) providing for adjustments relating to the deduction of input tax to be made as respects that item.

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Source: legislation.gov.uk · retrieved 2026-07-28