Section 21 | Business gifts

(1)In Schedule 4 to the Value Added Tax Act 1994 (matters to be treated as supply of goods or services), paragraph 5 (business gifts etc) is amended as follows.

(2)In sub-paragraph (2) (cases where sub-paragraph (1) does not apply), for paragraph (a) substitute—

(a)a business gift the cost of which, together with the cost of any other business gifts made to the same person in the same year, was not more than £50.

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(3)After that sub-paragraph insert—

(2ZA)In sub-paragraph (2) above—

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(4)This section applies in relation to gifts made on or after 1st October 2003.