The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
It is important to recognise that many transactions involving supplies of land and property are still liable to VAT at the standard rate. This guidance note provides an overview of the most common situations where VAT should be charged on the supply made.
The sale of a building or civil engineering work will be standard-rated if:
and it is not:
VATA 1994, Sch 9, Group 1
The sale of a new building as a ‘dwelling’ or a number of dwellings or for a ‘relevant residential purpose’ or ‘relevant charitable purpose’ is zero-rated, if the person who constructed the building is selling it.
Please see the following examples of supplies of new buildings:
This means that the freehold sale of new or partly completed office blocks, factories, warehouses and industrial units would all be standard-rated.
A building will be treated as 'new' for the first three years from the earlier of:
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