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 current VAT rules regarding when the construction of a new building can be zero-rated.
This should be read in conjunction with the Definition of dwelling, relevant residential and relevant charitable purpose guidance note.
A business can zero rate the construction of the following buildings:
VATA 1994, Sch 8, Group 5, item 2
The following conditions must be satisfied before the construction can be zero-rated:
It should be noted that the word ‘building’ has not been defined in the legislation. Therefore the word should be given its natural meaning which is that a building should be viewed as a structure that is fixed to the ground that at a minimum consists of walls (or an alternative, such as an arrangement of columns) supporting a roof that encloses a volume of space.
The structure must also have sufficient scale for human occupation and be made of durable materials such as brick, timber, etc.
Typical examples of buildings are houses, residential care homes and village halls. However, structures that do not exhibit the characteristics of a building, such
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