360. Domestic buildings and zero rating.

360.     Domestic buildings and zero rating.

Some categories of goods and services in the construction industry are either 'zero-rated'1 for or 'exempt' from value added tax. The following items are zero-rated2:

  1.  

    (1)     the grant of a freehold or lease for a term certain exceeding 21 years3 of, or the supply of services4 or building materials5 in the course of construction of: (a) domestic buildings or dwellings; (b) buildings to be used for certain communal residential purposes; or (c) buildings to be used by charities for non-business purposes6;

  2.  

    (2)     the