V3.140A Tax point—land
A person granting an interest in land, or a right over land, may not know the amount of the payment that he is to receive in respect of the purchase at the time when he is treated as making a supply under the general rule described in V3.132, ie the purchase money or compensation has not yet been determined. Alternatively, the consideration may take the form of rent, and be payable periodically or from time to time. Where this is so, special tax point rules apply as described below.
An interest in, or right over, land may be compulsorily purchased under statutory powers. Where the consideration for a supply of goods arising in such circumstances cannot be ascertained at the time when the land is made available to the purchaser, the goods are deemed to be supplied each time the grantor receives any payment for the purchase1.
The grant or assignment of the fee simple2 in land is a supply of goods3. The total consideration for a grant or assignment may not be determinable at the time when a person ('the grantor') grants or assigns the fee simple. Where this is so, goods are normally treated as separately and successively supplied at the following times. Firstly, as regards any part of the total consideration which is then determinable, goods are treated as supplied at the time determined in accordance with the general rules described in V3.132–V3.134. Secondly, as regards any part of the total consideration which
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