Commentary

RCB/13/21 Change in the VAT treatment of the construction self-supply charge

Part V16 Forms and other HMRC material

RCB/13/21 Change in the VAT treatment of the construction self-supply charge

RCB/13/21 Change in the VAT treatment of the construction self-supply charge

Revenue & Customs Brief, Issue 13. 6 October 2021

Purpose of this brief

This brief confirms that, following the Supreme Court decision of 31 March 2021 in the case of Balhousie Holdings Limited [2021] UKSC 11, HMRC have revised the meaning of 'entire interest' for the purposes of the self-supply charge.

Who needs to read this

You should read this brief if you're:

  1.  

    •     an organisations within the care home, NHS or charities sector

  2.  

    •     business is engaged in property transactions which are carried out for a relevant residential or relevant charitable purpose

Background

In March 2013, Balhousie Care Ltd bought a care home at the zero rate of VAT. To finance the acquisition and further developments, they entered into a sale and leaseback arrangement with Target Healthcare REIT. As a result of that

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