Finance Act 2007

Amendment of section 12 (deduction for tax borne or paid) of Principal Act.

83.— Section 12 of the Principal Act is amended—

(a) with effect from 1 May 2007 in subsection (1)(a) by deleting subparagraph (ia), and

(b) in subsection (3)—

(i) with effect from 1 July 2007 in paragraph (a) by substituting the following for subparagraph (i):

“(i) expenditure incurred by the taxable person on food or drink, or accommodation other than qualifying accommodation in connection with attendance at a qualifying conference as defined in paragraph (ca), or other personal services, for the taxable person, the taxable person’s agents or employees, except to the extent, if any, that such expenditure is incurred in relation to a supply of services in respect of which that taxable person is accountable for tax,”,

(ii) with effect from 1 May 2007 in paragraph (a)(iii) by inserting “or for the purpose of the supply thereof by a person supplying financial services of the kind specified in subparagraph (i)(e) of the First Schedule in respect of those motor vehicles as part of an agreement of the kind referred to in section 3(1)(b)” after “stock-in-trade”, and

(iii) with effect from 1 July 2007 by inserting the following paragraph after paragraph (c):

“(ca) For the purposes of subparagraph (a)(i)—

‘ delegate ’ means a taxable person or a taxable person’s employee or agent who attends a qualifying conference in the course or furtherance of that taxable person’s business;

‘ qualifying accommodation ’ means the supply to a delegate of a service consisting of the letting of immovable goods or accommodation covered by paragraph (xiii) of the Sixth Schedule, for a maximum period starting from the night prior to the date on which the qualifying conference commences and ending on the date on which the conference concludes;

‘ qualifying conferenc e’ means a conference or meeting in the course or furtherance of business organised to cater for 50 or more delegates, which takes place on or after 1 July 2007 at a venue designed and constructed for the purposes of hosting 50 or more delegates and in respect of which the person responsible for organising the conference issues in writing the details of the conference to each taxable person who attends or sends a delegate, and such details shall include—

(i) the location and dates of the conference,

(ii) the nature of the business being conducted,

(iii) the number of delegates for whom the conference is organised, and

(iv) the name, business address and VAT registration number of the person responsible for organising the conference.”.