Commentary

BB/11D/03 VAT—treatment of communal areas in blocks of flats

Part V16 Forms and other HMRC material

BB/11D/03 VAT—treatment of communal areas in blocks of flats

BB/11D/03 VAT—treatment of communal areas in blocks of flats

Business Brief, Issue 11. 25 July 2003

This Business Brief article announces Customs' new policy on communal areas in new buildings containing two or more dwellings. Typically these buildings are blocks of flats, which consist of individual dwellings and areas for the use of all residents, such as a lounge, laundry and refuse area. The first sale of each flat is zero-rated and the buyer also acquires a right to use the communal areas.

Where the communal areas are only used by residents and their guests, Customs accept that the construction of the

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