Notice for the OJ

 

Reference for a preliminary ruling by the High Court of Justice (England and Wales) by order of that court dated 21 February 2003, in the case of Centralan Property Ltd against Commissioners of Customs and Excise .

(Case C-63/04)

Reference has been made to the Court of Justice of the European Communities by an order of the High Court of Justice (England and Wales) dated 21 February 2003 , which was received at the Court Registry on 13 February 2004 , for a preliminary ruling in the case of Centralan Property Ltd and Commissioners of Customs and Excise on the following question:

Where:

During the period of adjustment provided for in article 20(2) of the Sixth VAT Directive¹ a taxable person disposes of a building which is treated as a capital good; and

The disposal of the building is effected by way of two supplies, being (i) the grant of a 999 year lease of the building (an exempt transaction under article 13(B)(b) of the Directive) for a premium of £6 million, followed three days later by (ii) the sale of the freehold reversion (a taxable transaction under article 13(B)(g) and article 4(3)(a) of the Directive) for a price of £1,000 plus VAT and which either are or are not preordained in the sense that once the first had been carried out there was no chance that the second would not be,

is article 20(3) of the Sixth VAT Directive to be interpreted so that:

(a) the capital good is regarded until the expiry of the period ofadjustment as if it had been applied for business activitieswhich are presumed to be fully taxed;

(b) the capital good is regarded until the expiry of the period ofadjustment as if it had been applied for business activitieswhich are presumed to be fully exempt; or

(c) the capital good is regarded until the expiry of the period ofadjustment as if it had been applied for business activitieswhich are presumed to be partly taxed and partly exempt in theproportion of the respective values of the taxed sale of thefreehold reversion and the exempt grant of the 999 year lease?"

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¹ - Sixth Council Directive 77/388/EEC OF 17 May 1977 on the harmonization of the laws of the Member States relating to turnover taxes - Common system of value added tax: uniform basis of assessment.OJ L 145, 13.06.1977 p. 1 - 40