Paragraph 5 of Schedule 4 to the Value Added Tax Act 1994 (disposal of business assets) shall be amended as follows.
In sub-paragraph (2)(a) (exception for gifts of small value), for "is" there shall be substituted ." of acquiring or, as the case may be, producing the goods was "
After sub-paragraph (2) there shall be inserted the following sub-paragraph—
In sub-paragraph (5) (transactions without consideration to be treated as supplies under paragraph 5 only where the supplier is a person entitled to credit for input tax), for "is" there shall be substituted ." or any of his predecessors is a person who (disregarding this paragraph) has or will become "
After that sub-paragraph there shall be inserted the following sub-paragraph—
The preceding provisions of this section apply to any case where the time when the goods are transferred or disposed of or, as the case may be, put to use, used or made available for use is on or after 17th March 1998.