RCB/64/07 VAT—changes in the VAT treatment of serviced building plots
Revenue & Customs Brief, Issue 64. 17 October 2007
HMRC is announcing a change in the liability treatment of serviced building plots.
A serviced building plot is bare land in respect of which civil engineering works have been carried out to provide access to essential services such as gas, electricity, water, main drainage, street lighting and sewerage. Until now, we have treated the supply of a serviced building plot by the landowner to a developer as consisting of two supplies – an exempt supply of land and a standard-rated supply of civil engineering.
A recent VAT tribunal decision in Douglas Virtue & Sonia Virtue T/A Lammermuir Game Services (2007) VAT Decision 20259 held that the sale of a “plot of land within a serviced site” (the tribunal's description, in preference to the term serviced plot) constituted a single exempt supply of land.
The tribunal also held that, in this case, the supply of the civil engineering works to the landowner was zero-rated because it had been made in the course of the