The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
This guidance note provides an overview of the main issues that need to be taken into consideration if a business is involved with supplying construction services or granting a major interest in a site that contains qualifying and non-qualifying buildings (ie the construction of a shop with flats above it).
This guidance note should be read in conjunction with the following notes:
Please note that if the business is only making supplies in respect of the qualifying part of the building, it does not need to apportion its supply and should charge VAT at the reduced or zero rate of VAT as appropriate. Alternatively if its supply only relates to the non-qualifying part of the property then VAT must be charged at the standard rate on the supply made.
Businesses that make supplies that relate in part to the qualifying and non-qualifying parts of the building will need to apportion the value of its supplies between the qualifying and non-qualifying buildings using a fair and reasonable apportionment. VAT will be due at the appropriate rate on each type of supply.
The following will need to be apportioned if the building will be used for qualifying
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