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 when the sale of the freehold interest or the grant of a long leasehold interest can be zero-rated. It should be read in conjunction with the following guidance notes:
VATA 1994, Sch 8, Group 5, Item 1
The supply can only be zero-rated if all of these conditions are satisfied:
The new building must be one of the following:
The sale, assignment or surrender of the following:
If the business intends to sell or grant a long lease in the property, but it becomes necessary to grant a short lease whilst a prospective purchaser is identified, the grant of the short-term lease will be exempt from VAT. The business will be required to adjust the amount of VAT claimed on costs associated with
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